Webinar – The Estate Owner’s Guide: Tax Planning from Purchase to Succession

1024 768 Middleton Advisors

In collaboration with Martin and Company, part of the Shaw Gibbs Group, Middleton Advisors explored the key tax considerations facing estate owners, from purchase to succession.

In the latest webinar in the Middleton Tax Series, Hollie Byrne, Estates & Special Projects, was joined by Danny Crutchfield, Tax Partner at Martin and Company, specialists in rural and agricultural tax advisory. Chaired by Juliette Stacey, the discussion covered how estate owners can structure ownership, manage tax efficiently during the holding period, and plan for succession, particularly in light of recent reforms to agricultural and business property relief.

With the inheritance tax landscape continuing to evolve, including the £2.5 million allowance for agricultural and business property relief introduced from April 2025, the panel shared practical guidance on the decisions that shape long-term value, alongside an overview of current market conditions for estate and farmland buyers in the UK.

Key Takeaways

1. The market is highly price-sensitive.

After a post-COVID surge and a fifteen to twenty percent correction in some cases in 2023, the estate and farmland market has remained broadly static, though far from uniform. As Hollie Byrne explained, “the best-in-class properties are still attracting good interest and competitive bidding often results in premium prices being achieved,” while compromised properties, affected by road noise, development, or flooding, can struggle to sell at all. Around twenty-five farms have launched this spring, in line with long-term averages, though overall acreage is around fifteen percent down.

2. We are currently in a buyer’s market.

Farmers represented over fifty percent of transactions in 2025, both expanding existing holdings and acquiring new portfolios. Lifestyle and amenity buyers remain active but are far more selective than in previous years. As Hollie put it, “we’re seeing clients look into assets in much more detail, and ultimately these properties have got to work out on the spreadsheet as well.” Sellers are described as cautious, with many transactions completing privately and off-market.

3. Ask the right questions before you buy. 

Danny Crutchfield emphasised that structure should follow purpose, not the other way around. The starting point is always how the purchase will be funded, what the intended use is, and whether you’re “buying the estate with your head as a commercial business decision… or buying it with your heart.” The right structure for one family is rarely the right structure for the next.

4. Choose your ownership structure carefully.

Four main structures apply: sole trade, partnership, company, or trust. Sole trades are simple and flexible but create complications on death. Partnerships allow income and assets to be shared tax-efficiently with the next generation. Companies offer lower tax rates (capped at 25% versus 45% for individuals) but add reporting complexity and can create issues around private use. Trusts are particularly helpful for long-term succession planning but carry potential ten-yearly inheritance tax charges.

5. Understand the implications of ATED.

The Annual Tax on Enveloped Dwellings applies to residential properties worth over £500,000 held in corporate structures. Charges range from £4,600 a year for properties valued between £500,000 and £1 million, up to £75,000 a year for properties valued between £5 million and £10 million. Reliefs are available, including for working farmers and properties let to third parties, but anyone considering a corporate structure should weigh ATED exposure carefully.

6. Use trusts strategically for succession.

Following the April 2025 changes to inheritance tax relief, transfers into trust have become a key planning tool. Where property qualifies for APR or BPR, assets can be transferred with up to 100% relief, subject to the new £2.5 million restriction. Danny cautioned, however, that this is “reliant on not receiving a benefit from that land in the future,” making it essential to consider whether retained income from the asset is needed.

7. Rollover relief can defer significant CGT, but only on trading assets.

When selling a trading asset such as farmland, rollover relief can defer capital gains tax provided the proceeds are reinvested in qualifying trading assets within one year before or three years after the sale. It is not available on residential property, commercial lettings, or converted farm buildings used for letting. Danny noted that provisional rollover claims are possible, but warned: “if you don’t end up making that full rollover claim, then HMRC will come back for the capital gains tax and with interest, which is now quite a significant sum.”

8. The 60-day CGT reporting window is unforgiving.

Any capital gain on the sale of a UK residential property must be reported to HMRC within 60 days, with tax payable in the same window. On large estate sales, that’s a short period, making early valuations, clean records of improvements, and prompt professional advice essential.

9. Selling shares versus selling the property.

If an estate is held in a company, selling the shares can attract a lower stamp duty rate than selling the underlying property. However, the buyer inherits all historic liabilities, known and unknown, and any deferred tax liability sitting within the company, which often reduces the price they’re willing to pay.

10. The “wholly or mainly trading” test is critical for BPR.

Business Property Relief is applied on an all-or-nothing basis. If a landed estate’s non-trading income (typically rental) tips the business out of the “wholly or mainly trading” definition, BPR can be lost entirely, leaving only APR available, which doesn’t cover working capital, stock, or livestock. This makes ongoing monitoring of the trading/investment balance essential.

11. Beware gifts with reservation of benefit.

Gifting an asset while continuing to benefit from it, for example, gifting a house to children but continuing to live there rent-free, is treated by HMRC as if the gift never happened for inheritance tax purposes. Danny stressed the importance of ensuring that any post-gift occupation is on a formal market-rent basis, with regular revaluations.

12. Farmhouse APR requires the house to fit the farm.

APR on a farmhouse is only available where the house is “character appropriate” to the land it sits on. As Danny illustrated: “if that farming business is on 50 acres but you’ve got a 15-bedroom house which is worth 5 million pounds in isolation, then it’s unlikely that APR would be available.”

13. Build a suite of trusted advisors early.

Both speakers closed with the same message: estate ownership is too complex and too long-term to navigate alone. As Danny put it, “build that suite of trusted advisors around you,” covering valuation, accounting, and legal advice. Hollie added: “seek professional advice relating to all manners of the transaction, especially taxation, at the earliest opportunity to set out your position in good time and eliminate any risks or surprises further down the line.”

For tailored tax and succession advice for estate owners, contact Martin and Company.

Download the presentation slides here.