Navigating IHT and Succession Planning: Protecting the Future of Family Farms
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Set against the backdrop of the October 2024 Budget and ongoing policy uncertainty, the session focused on one clear message: succession planning is not just a tax exercise, it is a long-term business strategy. While tax efficiency matters, decisions that shape the future of a family farm must be grounded in what is right for both the business and the family.
A changing landscape for IHT planning
Lisa Millington explained that the past year has been very different from what many advisors expected.
“What I’ve spent the last year or so doing is much different than what I expected, because I thought I would be doing a lot of asset shifting, but what I’ve found myself doing is helping farmers understand what the IHT changes will mean for them personally.”
Rather than rushing into reactive measures, many families first need clarity. That begins with understanding what they own, how assets are structured, and what potential liabilities could arise under revised IHT rules. Only then can meaningful mitigation strategies be explored.
Louise Speke reinforced this approach, stressing that succession planning is a structured, long-term process, not something that can be resolved overnight.
“The first step to take is really to analyse what you’ve got and do a stock take of your assets. Being clear about who owns what and how you are holding or using those assets. Then you have the information that’s key to go to the experts and start discussing planning.”
Without this clarity, planning becomes guesswork. With it, families can make informed decisions that balance tax efficiency with business continuity.
Breaking down the barriers
Despite the urgency, succession planning is often delayed. The panel acknowledged the practical and emotional obstacles that prevent families from starting the process.
“On a practical level there has been a couple of key barriers, and one of the main barriers is time,” Lisa noted. “And the other thing of course is that what we are talking about here is death.”
Time pressures during busy farming seasons, combined with discomfort around discussing mortality or retirement, mean conversations are frequently postponed. Yet as Louise Speke warned, delaying these discussions narrows the options available.
“Too many families I’m seeing don’t want to have these conversations, but the earlier you start having these discussions and making those decisions, the more options you have.”
Early planning creates flexibility. Waiting until a crisis, whether death, illness, or dispute, significantly limits it.
Seeking the right advice
A recurring theme throughout the session was the importance of specialist advice. Succession planning for a diversified farm business is rarely straightforward.
Olivia Midgley highlighted the risks of relying on generalist advisors: “Since last October, the message has been to seek advice, but it should be to seek the right advice. Because some of those advisors are not clued up about the intricacies of farm business and especially a farm business that has diversified.”
Modern farm businesses often include property portfolios, renewable energy projects, tourism ventures, contracting arms and off-farm investments. Each element carries different tax and structural considerations. Effective planning requires collaboration between solicitors, accountants and land agents, working together to create a holistic strategy.
Practical tools for long-term protection
The discussion moved beyond theory into practical steps families can take now:
· Powers of Attorney were described as essential, planning for incapacity is just as important as planning for death.
· Updated wills, partnership agreements and business plans provide clarity and prevent disputes.
· Market valuations ensure accurate tax forecasting and informed gifting decisions.
· Post-nuptial agreements and financial planning products may help balance fairness between farming and non-farming children.
Importantly, fairness does not always mean equal division of assets. Structured financial solutions can allow the farming business to remain intact while ensuring non-farming family members are treated equitably.
Gifting strategies remain relevant under IHT planning but must be considered alongside Capital Gains Tax implications and the wider family context.
10 key takeaways from the session
Attendees left with clear, actionable guidance:
1. Start early, delay reduces flexibility.
2. Professional advice is an investment, not a cost.
3. Analyse your assets thoroughly before making decisions.
4. Have open family conversations about roles and retirement.
5. Put Powers of Attorney in place to prepare for incapacity.
6. Understand fairness versus equality in inheritance decisions.
7. Use gifting strategically, considering wider tax impacts.
8. Keep documentation updated: wills, agreements, business plans.
9. Encourage professional collaboration across legal and financial advisors.
10. Focus on practical execution: valuations, timing and structured plans matter.
Safeguarding both the business and the family
The session concluded with a powerful reminder: proactive succession planning protects more than just assets. It protects relationships, stability and the long-term viability of the farm.
In an era of tax reform, economic pressure and diversification, succession planning is no longer something to “get round to.” It is a core part of strategic farm management.
As demonstrated at Farm Business Innovation 2025, these conversations are complex, but they are far easier when families have access to the right expertise, the right information, and a supportive environment in which to ask difficult questions.
Succession planning may begin with tax considerations, but ultimately it is about ensuring that the farm, and the family behind it, can thrive for generations to come.