NSA asks for united livestock sector in face of Brexit disarray
With nothing but political rhetoric and unanswered questions in the week since the British public went to the polls to make their voices heard on EU membership, the National Sheep Association (NSA) is working within the industry to ensure a united front on priorities for the sheep sector.
Phil Stocker, NSA Chief Executive, says: “NSA and other farming organisations continuously asked for a ‘Plan B’ during the referendum campaign, so people could go to the polls making a decision based on fact. But with the decision to leave having now been taken, the absence of such a plan means we are completely in the dark and rudderless. NSA is working on a list of priorities for the sheep sector and, knowing that other stakeholders will be doing the same, we want to work together to ensure a single voice for agriculture. Now is not the time for one-upmanship. Now is the time for clear dialogue and direction. We want to set an example for the politicians and fight side-by-side for a positive future.”
NSA appreciates there will be many business sectors calling for action, but with farming and food providing more than 3.5 million jobs and contributing to 7% of the UK economy, it is clearly a sector that needs priority treatment.
Phil continues: “Farming is not only important to the economy, to employment and to the survival of rural communities, it also produces the most essential ingredient of life – food. Ensuring food security for the nation is essential at a time when markets, economies and political relationships are highly volatile, yet farming has taken a back seat in discussions before and after last week’s vote. A united voice from the agricultural sector must be heard. And the politicians who encouraged people to ‘vote leave’ need to be held to the attractive promises they made.”
NSA is consulting within its regional structure to finalist a list of priorities for the sheep sector, and is discussing options with other stakeholders about a united approach on the future of agriculture support and farming regulations."
Stepping back and passing the farm business on? Consider a lifetime transfer
Many farm and estate owners will come to a point where they either wish to (or ought to) take a step back from the day-to-day running of the business and allow the next generation the opportunity to step up and take over. In this instance what is known as a lifetime transfer could be considered.
From an Inheritance tax (IHT) perspective it is important to have an understanding whether Agricultural Property Relief (APR) or Business Property Relief (BPR) would be available at that time. If the transfer is made to an individual then the gift itself would not have an immediate inheritance tax consequence, but if the owner were to die within seven years then there could be a potential charge if the estate would not have qualified for either relief at the point the transfer was made.
Also of concern is the Capital Gains Tax (CGT) position on making the gift. Such a transfer represents an occasion of charge for CGT purposes and, regardless of the fact that no proceeds are received, the gain is based on the market value of the asset gifted.
Where the gift is made to an individual there is valuable CGT holdover relief available provided that certain conditions are met. Broadly, most assets in the trading element of the business will qualify for the relief which effectively defers the capital gain arising with the recipient receiving the assets at their historic base cost. The same applies to assets that would qualify for APR.