The autumn Budget sent shockwaves through farming communities. For many families, changes to APR have made succession planning and tax management feel more urgent,听and more complicated,听than ever. But knowing where to begin is half the battle. We spoke to four financial advisers who specialise in farming finances and compiled a practical action list. Some steps you can take this week. Others require longer-term thinking. All of them matter.听
Act now听
Work out what you're worth.听听
Many farmers haven't had a professional valuation in years, often because there was no pressing reason to. But book value and market value can be worlds apart, and it's market value that counts for probate. Mark Harrison at McHardy Private Wealth is blunt:听听
"The balance sheet value of assets and stock in accounts can be very different from market value."听听
Start there, then review your and partnership agreements, and make sure personal finances are properly separated from the business. You cannot plan from a position of uncertainty.听
Get a Power of Attorney in place.听听
Esther Clemmey from Integrity365 has seen first-hand what happens without one:听听
"We have seen farms unable to access the money needed to feed the cows because no Power of Attorney meant they couldn't get to the funds when the account holder was incapacitated. The cows had to be sold."听听
Boring Money explains in more detail
Review your insurance.听听
Most farms carry significant debt 鈥� machinery, land, buildings. The loss of one key person, even temporarily, can make that debt unserviceable.听听
"Key person insurance and debt protection can be the difference between keeping or selling the farm," says Clemmey.听听
If you don't have an adviser yet, is a plain English starting point for understanding what you need and why.听
Involve your family.听听
Succession only works if everyone is in the loop. It's not always an easy conversation, but it's far harder to have in a crisis.听
Plan for the long term听
Get the right specialist in your corner.听听
Agricultural finance is not general finance. APR, succession structures, partnership agreements,听the details matter enormously, and generalists can and do miss things. Andy Gillett at BRI Wealth Management urges farmers to:听
"make sure the structure of the business is correct for tax and succession, and that you understand what reliefs will or will not qualify on your assets. Ensure land and assets are registered properly, especially for older farmers who may have owned land for a very long time."听
Build a coordinated team,听accountant, solicitor, financial planner,听who all understand agriculture and ideally work together.听
Build a proper succession plan and keep it updated.听听
A succession plan is not a document you write once and听file away. It needs to reflect your current structure, account for and cover the full picture: wills, partnership agreements, and powers of attorney. Getting the framework right now gives you options later.听
Start a pension and understand why it matters more than ever.听听
Too often, succession is front of mind for farmers and pensions are an afterthought. That needs to change,听and this is where Boring Money can help.听
The case is straightforward. A basic rate taxpayer who puts 拢80 into a pension sees it become 拢100,听the government tops up every contribution via tax relief. Higher rate taxpayers can claim back more through Self-Assessment, meaning听拢1,000 contribution costs听just 拢600 after relief. And with income tax thresholds frozen until 2031, those reliefs are becoming more valuable every year.听
Holly Mackay, founder of Boring Money, makes the case simply:听
"At a time when the tax take is at all-time highs, pensions are an undervalued way to get some freebie Government top-ups. As well听as听diversifying your retirement income streams, they also give you 20p back for every 80p basic rate taxpayers put in. And give higher rate taxpayers the chance of an听additional听rebate when you do your tax return so听it's听a double win."听
听As Mark Williams of Price Ferguson Wealth Management adds:听听
"Pensions are unrivalled in their ability to grow long-term wealth. From day one, tax relief amplifies every contribution, while investment growth remains protected."听
For farming families specifically, pensions also solve a succession problem that catches many out.听
Esther Clemmey explains:
"The most common reason succession planning is difficult for farmers is the gifting with reservation rules,听older partners cannot gift assets to the next generation because they are reliant on the partnership income. Having strong pension provision enables this gifting to take place whilst stepping away from partnership income, creating a smoother succession pathway."听
Build a pension pot and you create a genuine exit route, an income source outside the farm that makes it possible to hand things over properly. You听don't听need to be a financial expert to get going. Boring Money has done the听hard work听for you: their听听independently tests and rates personal pension providers in plain English, so you can compare options without wading through jargon. Many let you start from as little as 拢25 a month set up online, no adviser听required.听
Don't听assume financial advice听isn't听for you.听听
Many advisers now offer fixed fees for a specific piece of work,听no ongoing relationship听required.听听
Clemmey is clear:
"I work with farmers who put 拢100 per month into a pension, all the way up to those with millions in investments."听听
Not sure whether you need an adviser, or what it would听actually cost听you? Boring Money's听听walks you through exactly what to look for, what questions to ask, and how much you should expect to pay.听听
The rules have changed. As Clemmey puts it:
"The biggest pitfall is complacency. Don't wait until it's too late. Get going and protect the future of the farm."听
Boring Money is an independent financial information and comparison platform and does not听provide听financial advice.听
