Limited companies

[essexpete]

How a limited company structure can help farming businesses - Farmers Weekly

Most farm business owners should investigate whether trading as a company would be beneficial to them, says Iain McVicar, head of the farms and estates

www.fwi.co.uk

I have not access to full article as too tight to subscribe.
If a farming family transfers the business to a company with family members shareholders and directors how would the land be treated if owned by a family member. Would a rent have to be shown? Could it jeopardise IHT planning if the owner died and the land showed as investment?

 

[yellow belly]

As with many partnership the land and buildings can stay in current ownership with rent paid by the company

 

[essexpete]

As with many partnership the land and buildings can stay in current ownership with rent paid by the company

Yes I get that but what are the implications if the land is owned out right by an older family member who then falls off the perch?

 

[farmerdan7618]

Can create IHT issues, but depends on what type of land it is. Anything that might go for development or woodland likely to be a problem.

Rent is optional and has implications for capital gains tax, should it be sold of course.

I do lots of business structure planning, feel free to PM me if anyone wants a chat about it.