Strategic Estate Planning for a Diversified Business
Client Profile
A long-established family-run farm in Cheshire had diversified over the years, converting approximately 38% of its property into residential and commercial lettings. The owners sought to ensure that their estate planning would protect these assets from significant Inheritance Tax (IHT) liabilities.
Challenges:
Determining the optimal ownership structure for diversified assets to qualify for Agricultural Property Relief (APR) and Business Property Relief (BPR).
Ensuring that the estate plan would withstand scrutiny from HM Revenue & Customs (HMRC).
Implementing the plan proactively to safeguard the estate for future generations.
Brightshire's Approach:
Brightshire conducted a comprehensive review of the farm’s diversified operations and asset ownership. They provided strategic advice on restructuring the partnership and asset holdings to align with APR and BPR qualifications. This included detailed planning to ensure that the diversified elements of the business would still benefit from available reliefs.
Outcome:
Upon the unexpected passing of the client, HMRC challenged the estate’s claim for APR and BPR.
Brightshire successfully defended the estate’s position, securing significant IHT reliefs and resulting in substantial tax savings.
The proactive planning ensured the continuity of the farming business and preserved assets for the next generation.
"Brightshire's foresight and meticulous planning were instrumental in protecting our family's legacy. Their expertise gave us peace of mind during a challenging time."
Mr & Mrs P Bowen