Future of the Family Farm’ - Succession Event in association with NatWest
Four key speakers from NatWest, Davisons Accountants and Stephens Scown Solicitors were invited
to join farmers and EHFN on the 23rd of February at The George Hotel, South Molton for an
informative and interactive morning on the succession of the farm, their key points are summarised
below.
Richard Johns (NatWest):



Richard focused on the enhancement of commercial focus in their family farm; by adopting a
more commercial stance to their business by remaining aware and objective to the needs of
their business and how it can change depending on the commercial focus.
Understanding the trajectory of your business will allow for you to make more informed
and rational decisions to keep you going in the desired direction; which can be aided by
monitoring your progress and key business indicators.
Diversification can add value to your business, by lowering the cost of production, or provide
alternative streams of income.
Matthew Guard (Davisons Accountants):



Understanding what the taxman wants with regards to succession. Be aware when
considering planning for a barn conversion in regards to inheritance tax, capital gains and
VAT. It may be advisable to pass on the ownership of the field before applying for planning
permission.
Most important to understand is that despite the wishes of a will, a partnership agreement can
‘trump’ this and so need to ensure the two documents complement one another.
Each case can vary greatly so is advisable to get the opinion of your accountant or another
third party.
Malcolm Emery (Stephens Scown Solicitors)




Know your enemy of succession - the 4D’s: Disease, Divorce, Debt and Death.
Two types of estate planning a company (Ltd.) or partnership. Partnership relies on a
written agreement between those involved otherwise the law dictates the estate to be shared
equally between partners.
Be careful when diversifying that from your income revenue over 50% remains from trading
otherwise you can lose your right to business property relief for inheritance tax.
Proprietary Estoppel – is the when someone contests the will due to a former promise made
but those contesting have to show that they are entitled by loss of detriment I.e. they turned
down other job opportunities as believed they were going to inherit the farm.
Suzie Murray (Stephens Scown Solicitors)

Land partnership Scheme has been designed to bring farmers together by agreement to
create new business opportunities. For example through: Skill Alignment, Increasing market
shares, Use of new technology, Share of resources, Increasing profit revenue.