A Welsh Government farming advice service is to hold a roadshow around Wales, offering help on succession planning in light of inheritance tax changes.

As Welsh farming families consider the implications of the UK government’s plan to limit 100% agricultural and business relief for inheritance tax (IHT) to the first £1m of value, Farming Connect will tour Wales, meeting businesses consider different options for protecting their assets including succession planning.

The Autumn Budget on 30 October included significant proposed changes to IHT rules and these will impact many farm businesses.

Demand for the advice available through Farming Connect is anticipated to be high as a result therefore it is holding 10 events where experts in farm IHT issues and succession planning will provide important guidance on the planned measures and advise on how farmers can mitigate the effects of the change.

They will include Dr Nerys Llewelyn Jones, of Agri Advisor, who says the changes further emphasise the importance of timely and effective succession planning.

For example, the seven-year rule still applies which means someone could transfer an asset at least seven years before their death, without having to pay IHT on that asset. These are referred to as Potentially Exempt Transfers (PETs)

“The changes could lead to more transfers between generations before death but reservation of benefits rules apply and therefore this must be considered carefully,’’ says Dr Llewelyn Jones.

“If these rules are broken, for example if the gift donor is still benefiting in some way from the estate, for example living in the farmhouse, it may be referred to as a “failed PET” and will then become subject to IHT.’’

She anticipates heavier scrutiny on valuations and a greater need to have assets valued.

Until now, farmers will have been advised to essentially “keep farming” for as long as possible to qualify for Agricultural Property Relief (APR).

“This will apply possibly to assets that they are seeking APR and Business Property Relief (BPR) on, including those assets within the £1m cap’’ says Dr Llewelyn Jones.

However, there will be changes to the legal advice previously given as a result of the Budget and she strongly advises farmers to seek professional advice and put a plan in place.

“For some, small changes will enable them to maximise the new IHT regime and the reliefs available but for others significant planning and consideration will be required with some difficult decisions to be made,’’ says Dr Llewelyn Jones.

Solicitors, accountants and land agents will be on hand to answer questions.

The first event will be in the Ivy Bush, Carmarthen, on 20 January, before County showground, Haverfordwest on 22 January.

Moody Cow in Llwyncelyn will host and event on 27 January, before Celtic Royal in Caernarfon on 3 February.

Other events will be held at The Elephant & Castle, Newtown on 5 February, Royal Welsh Showground on 10 February, with the final event in Rhydymain Hall, Dolgellau on 11 February.

For further details visit https://businesswales.gov.wales/farmingconnect/whats-on