Farming in France

nxy

Member
Mixed Farmer
No its a bit of a nightmare, no disowning offspring including half brothers and sisters.You may get relief in limoges near the station but thats about it.Inheritance tax is the killer if no planning is done at least 10 yrs in advance of your planned passing.Thats a starter for ten
This is the main thing to take on board it needs to be planned well in advance. If you start early and jump through the right hoops you can considerably reduce the final tax bill that your children will face. by making use of allowances and exploiting reductions in value like making sure the land is tenanted. However unlike the UK its almost impossible to completely avoid paying something if leaving more than 100k per child.
 
You put the farm in a GFA groupement fonciere agricole (limited company with shares) rent it with an 18 year lease (Bail rurale) to the Farming business this gives you 70% tax relief, Then slowly start transferring the shares too the inheriters,
Can you put the farm in a gfa once you own it or does it need to be done at time of purchase? My accountant has mentioned it but is recommending owning the land personally then renting it back to the gaec then gradually transferring the gaec to our daughter and possibly son. Sounds like I need to revisit the gfa with the accountant!
 

will l

Member
Arable Farmer
Can you put the farm in a gfa once you own it or does it need to be done at time of purchase? My accountant has mentioned it but is recommending owning the land personally then renting it back to the gaec then gradually transferring the gaec to our daughter and possibly son. Sounds like I need to revisit the gfa with the accountant!
Yes the GFA is the the simple bit the expensive part is the Bail Rurale, Seperate the "null propriete" and the "usufruit" The farm buildings can go in the bail rurale with the land and look at the tax rates on "revenue fonciere" ie the rent,It can be fiscally attractive,
 

will l

Member
Arable Farmer
It all sounds very complicated šŸ¤”ā€¦
My two farms in France are owned by a uk ltd company. I can just transfer my shares to my kids just as if that ltd company owned land in the uk (as it did before)šŸ¤·ā€ā™‚ļø
You might want to run that past a specialist!
 

will l

Member
Arable Farmer
A word of warning to those looking in Franceā€¦ in the time I have been here, my home farm is still worth the same as I paid for it whereas land/houses in England have trebled.
still, at least there are no gains tax to worry aboutšŸ‘
Remember your inhertance value is taken at the date of death so a cow that dies the day after your family will still pay tax on, same with all assets.
 

nxy

Member
Mixed Farmer
inheritance tax direct decendants 15,928k upto 55,2324k 20%
brothers and sisters upto 24k 35% +24 k 45%
Those are the headline rates. There are several reliefs available to farmers if they are careful.

As mentioned before make sure that the land ownership is separated from the occupier in some way. Forming a GFA is a common way this is done. 75% on the first 300k 50% after on tenanted land.

Also bear in mind that if passing on a working business to someone who is going to carry on running that business there is relief of 50 to 75% depending on the value.

 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 77 43.5%
  • Up to 25%

    Votes: 62 35.0%
  • 25-50%

    Votes: 28 15.8%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% Iā€™ve had enough of farming!

    Votes: 4 2.3%

Red Tractor drops launch of green farming scheme amid anger from farmers

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  • 1
As reported in Independent


quote: ā€œRed Tractor has confirmed it is dropping plans to launch its green farming assurance standard in Aprilā€œ

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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