AHA Succession

EJS

Member
Mixed Farmer
Location
Ashford, Kent
I am hoping to be the third succession on an AHA tenancy but just a bit concerned about the income I need to earn from the farm to qualify. I believe that I need my main income to have come from the farm for 5 years, which it does, but my husband is a self-employed builder who earns more than me, do they take that into consideration? or is it just my income? My Dad thinks the landlord would probably approve anyway, but the land agents can be a pain and I would rather it was watertight.
 

cletracboy

Member
Location
Staffordshire
Going through it myself at the moment and I think your husbands income maybe an issue, my wife's income was a potential problem. You can choose your 5 years out of any of the last 7.
My dad thought our landlord would wave it throughout but they aren't and I wasn't surprised as getting you on an fbt increase the value of the farm and is treated more favourably for inheritance tax.
There is a lot at stake so worth some professional advice before you put you application in. Good luck
 
I am hoping to be the third succession on an AHA tenancy but just a bit concerned about the income I need to earn from the farm to qualify. I believe that I need my main income to have come from the farm for 5 years, which it does, but my husband is a self-employed builder who earns more than me, do they take that into consideration? or is it just my income? My Dad thinks the landlord would probably approve anyway, but the land agents can be a pain and I would rather it was watertight.
It's not just income - it's livelihood.

So yes they will take into account partners income, but also things like houses, holidays, etc etc.
(If farm provides you with a house, and pays utility bills etc, that all works in your favour).
 
Going through it myself at the moment and I think your husbands income maybe an issue, my wife's income was a potential problem. You can choose your 5 years out of any of the last 7.
My dad thought our landlord would wave it throughout but they aren't and I wasn't surprised as getting you on an fbt increase the value of the farm and is treated more favourably for inheritance tax.
There is a lot at stake so worth some professional advice before you put you application in. Good luck
Professional advice is vital .
 

EJS

Member
Mixed Farmer
Location
Ashford, Kent
Yes, I think I shall have to speak to a specialist. Parents still live in one house and Aunt lives in another, I sort of replaced my Uncle when he died but farm still supports Aunt, all quite tricky - just concerned as husbands work is picking up now and will be breadwinner this year, will take professional advice and get things in motion.
Thanks for all replies
 

Col555

Member
Location
Cumbria
In a similar situation, the wife earns more than me. We have a joint bank account that all our ordinary living expenses come from, phone, electric, water, council tax, car insurance, fuel, and food etc are paid from. we both put into it monthly with a standing order, but I put more. any extras such as more fuel/holidays/eBay acc etc usually comes from the wife's account
I hope it will satisfy anyone that looks at our personal account regarding succession.
 
In a similar situation, the wife earns more than me. We have a joint bank account that all our ordinary living expenses come from, phone, electric, water, council tax, car insurance, fuel, and food etc are paid from. we both put into it monthly with a standing order, but I put more. any extras such as more fuel/holidays/eBay acc etc usually comes from the wife's account
I hope it will satisfy anyone that looks at our personal account regarding succession.
A big factor can be your house - is it on the farm? Provided by the farm?
How about vehicles? Fuel? Etc

All these things count.
 

Col555

Member
Location
Cumbria
A big factor can be your house - is it on the farm? Provided by the farm?
How about vehicles? Fuel? Etc

All these things count.

I have my own house, off farm, with mortgage going out of my personal acc, we have our own car (buy our own fuel) , but I commute to work in farm pick up and fuel, checking stock of at some land en-route.

Surely if I was living in a house provided by the farm, the situation wouldn't be of benefit as you suggested, because I wouldn't be fully supporting my self from the farm wage?
 
I have my own house, off farm, with mortgage going out of my personal acc, we have our own car (buy our own fuel) , but I commute to work in farm pick up and fuel, checking stock of at some land en-route.

Surely if I was living in a house provided by the farm, the situation wouldn't be of benefit as you suggested, because I wouldn't be fully supporting my self from the farm wage?
Nothing to do with wage - definition is livelihood. So if house is provided by far, it counts towards livelihood.
 

EJS

Member
Mixed Farmer
Location
Ashford, Kent
I am the same Col555, have our own house and car which we pay for out of joint acc, but I do have a really old pick-up that the farm pays fuel, tax etc for, so hopefully that will count, also farm pays for dog food for my collies, but nothing else. Farm pays me monthly income but obviously it is very little as it is also supporting parents and Aunt who live in the cottages, bit delicate really - am definitely getting some professional advice now to get in order. Possibly thinking about it during harvest wasn't the best idea but have spent alot of time sitting in tractor mulling over things!
 

nickf

Member
Location
Oxfordshire
Professional advice is essential. I went through it all about 8 years ago and avoided land agents and went straight to Burgess Salmon to make sure everything was done correctly.

You can have off farm income or a higher income from a partner but what you need to prove is that you live off your farm income, the other income can be saved or invested. I had to produce 5 years worth of bank statements and credit card statements to show that we were living off my income from the farm.

Also I run my business as a limited company and we always showed my salary as coming from the agricultural side of the business. The off farm income of the business was always put at the end of the p&l account. The landlord's agent commented that if we had showed my drawings coming out at the bottom of the p&l then succession would have been more difficult.
 

silverfox

Member
Location
Shropshire
I am the same Col555, have our own house and car which we pay for out of joint acc, but I do have a really old pick-up that the farm pays fuel, tax etc for, so hopefully that will count, also farm pays for dog food for my collies, but nothing else. Farm pays me monthly income but obviously it is very little as it is also supporting parents and Aunt who live in the cottages, bit delicate really - am definitely getting some professional advice now to get in order. Possibly thinking about it during harvest wasn't the best idea but have spent alot of time sitting in tractor mulling over things!
Are you a partner in the business. If so you should be getting a share of the profits, shown on the accounts.
How big is the farm?
 

EJS

Member
Mixed Farmer
Location
Ashford, Kent
Are you a partner in the business. If so you should be getting a share of the profits, shown on the accounts.
How big is the farm?
No - not a partner, just paid every month, although the accountant did say we needed to sort out some sort of partnership, Dad was worried about liabilities. Tenanted farm is 300ac and we own a further 60ac with our 2 grainstores on - not big, but enough. There are 2 cottages that go with the farm that my Dad and my Uncle had as they farmed in partnership until my Uncle in his sixties died very suddenly 7 years ago, my Aunt still lives the cottage as do my parents in the other one.
 

silverfox

Member
Location
Shropshire
No - not a partner, just paid every month, although the accountant did say we needed to sort out some sort of partnership, Dad was worried about liabilities. Tenanted farm is 300ac and we own a further 60ac with our 2 grainstores on - not big, but enough. There are 2 cottages that go with the farm that my Dad and my Uncle had as they farmed in partnership until my Uncle in his sixties died very suddenly 7 years ago, my Aunt still lives the cottage as do my parents in the other one.
Similar to me then, I am tenant on 330 and own 75.
Dad made me a partner when i was 21, and i became full tenant at 31, which coincided with a move out of the village into a new build house.
You need to become a partner really, to show your part of the business, not just paid labour.
Good luck.
 

EJS

Member
Mixed Farmer
Location
Ashford, Kent
Thanks Silverfox, will speak to Dad again and probably accountant re partnership. Thanks for all the advice everyone, need to get my act together ASAP I think.
 

TomB

Member
Location
Wiltshire
Thanks Silverfox, will speak to Dad again and probably accountant re partnership. Thanks for all the advice everyone, need to get my act together ASAP I think.
It's a slow process, I think getting a partnership agreement drawn up will need to be done ASAP. Make sure you find the best professionals who are experts at this, it is a bit specialised. The TFA have a recommended list of agents/ lawyers etc. remember that the landlord has a lot to lose by allowing the succession, so all paperwork needs to be square. Avoid getting transferred onto an FBT if possible.
 

EJS

Member
Mixed Farmer
Location
Ashford, Kent
It's a slow process, I think getting a partnership agreement drawn up will need to be done ASAP. Make sure you find the best professionals who are experts at this, it is a bit specialised. The TFA have a recommended list of agents/ lawyers etc. remember that the landlord has a lot to lose by allowing the succession, so all paperwork needs to be square. Avoid getting transferred onto an FBT if possible.
Have just joined TFA and have someone calling me Monday for some initial advice and some recommended professionals which is a start. Definitely want to avoid FBT and keep AHA tenancy.
 

Top cereal and oilseed growers honoured at the Yield Enhancement Network Awards 2021

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Despite an average growing year for most crops, many growers managed to go above and beyond their predicted max yields, with Lincolnshire grower Tim Lamyman taking the top spots for his wheat yields and his world record breaking winter barley yield.

The highest cereal and oilseed yields achieved at harvest 2021 were announced at this year’s Yield Enhancement Network (YEN) Awards on Wednesday 24th November at the Croptec Show. With award presentations by Tom Bradshaw, Vice President of NFU, 24 farms took home the evening’s top awards for highest yield and highest potential yield achieved for wheat, winter and spring barley, oats, and oilseed. The 2021 winners came from all corners of the UK, as well as from as far afield as Finland and New Zealand.

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