Succession planning & inheritance tax

The CLA provides a range of resources to assist its members in their succession planning journey to:

• Make the process go as smoothly as it can
• Keep down the cost to members
• Help members to find a solution that works for them, their business and their family, in a tax-efficient manner.

See below for an overview of all those resources, designed for members concerned about their inheritance tax position, or who want to plan for succession.

Know the difference between IHT and CGT?

Before you explore our expert guidance, it's important to make yourself aware of the correct terminology when it comes to tax and planning for the future.

Find out what the government's proposed changes to inheritance reliefs mean for you and your family in our review frequently asked questions.

Nobody likes to talk about death, and very few enjoy thinking about succession, but these conversations are essential.

The best place to start, if you're a CLA member, is by watching our webinar below. Hear from industry experts and learn how to have that difficult discussion with your family.

More detailed guidance is available on a range of issues relating to inheritance tax and succession planning.

As a result of recent changes, many more families will need to think about inheritance tax when a family member dies. This is due to reforms of inheritance tax reliefs, agricultural property relief and business property relief from April 2026, and unused pension funds and death benefits in a person’s estate becoming liable for inheritance tax from April 2027.

There are some essential steps that have to be taken to enable the inheritance tax due to be calculated, reported to HM Revenue & Customs and paid. These are summarised in the essential guide available to download below alongside other crucial support to help you plan ahead.

• In Focus: Agricultural & Business Property Relief explained
  This article explains these two crucial inheritance tax reliefs, and the conditions applicable to them.
• Guidance Note 20-11: Notes on IHT Agricultural Property Relief for farmhouses (members only)
  If you have a farmhouse on which you would like to be able to claim agricultural property relief, this guidance note will explain the conditions.
• Guidance Note 07-21: Grazing Licences, Agricultural Property Relief and Business Property Relief (members only)
  Many members have their land grazed by livestock belonging to another farmer. This can potentially be more complicated from an inheritance tax perspective.  This guidance note highlights the key issues you need to consider in relation to maintaining the available inheritance tax reliefs.

• In Focus: Capital Gains Tax and Reliefs Explained
  If you are considering making a gift of an asset, or selling something, you should consider capital gains tax.  This article explains the tax and the various reliefs that might apply.

• GN15-18 Forestry, Woodlands and Tax (members only)
  If you are conducting forestry, or have woods on your farm, this article will explain the tax treatment, including for inheritance tax.

For the most in-depth coverage of particular topics, the CLA produces handbooks.

CLA members can purchase these for a reduced price. The full range is available here.

Of course, no handbook can be a substitute for bespoke advice, such as from your own solicitors, accountants and financial planners. The CLA’s tax team can assist you with personal succession planning advice (see further below). However, with the benefit of the information in this handbook, those conversations will be more productive.

Here are the most relevant handbooks to inheritance tax and succession planning:

If you are a CLA member entitled to bespoke advice, the CLA tax team can assist with your tax questions and provide advice on your succession planning.

However, we are currently dealing with much higher levels of enquiries than normal, and given the lobbying work that the team is doing in connection with the 2024 Autumn Budget, it may take a few weeks for us to get back to you.  So, please check whether the resources provided above can answer your question.

If not, please call 0207 235 0511 or email advice@cla.org.uk. The more detail you can provide of your specific query and the relevant context, the quicker this can be allocated to the most appropriate member of the team to assist.

If you would like to discuss your options for succession planning, this article explains how we can assist. Again, please provide as much information as possible in advance to help us provide you with the most accurate and relevant advice. Please call 0207 235 0511 or email advice@cla.org.uk to obtain the questionnaire used to start this process.