Partnership land or partner's land?
Partnership land or partner's land?
- 2004
- Farm Tax Brief 19(9) November 2004, 1-2(2) .
The majority of farming businesses in England and Wales are carried on by individual sole traders or partnerships made up of individuals who are often members of the same family. The partnership is an important mechanism for involving all members of a family and for easing the transfer between generations. However, it needs to be decided whether the land being farmed should be held as one of the assets of the partnership or whether it should be held outside of the partnership, in a formal lease or tenancy, which would make it easier to use the land to provide for family members outside of the business. Considers the pros and cons of both arrangements.
PARTNERSHIPS
FARM TENANCIES
ASSETS
FARM BUSINESSES
INHERITANCE TAX ACT 1984
CAPITAL GAINS TAX ACT 1992
TAX RELIEF
FINANCE ACT 2003
The majority of farming businesses in England and Wales are carried on by individual sole traders or partnerships made up of individuals who are often members of the same family. The partnership is an important mechanism for involving all members of a family and for easing the transfer between generations. However, it needs to be decided whether the land being farmed should be held as one of the assets of the partnership or whether it should be held outside of the partnership, in a formal lease or tenancy, which would make it easier to use the land to provide for family members outside of the business. Considers the pros and cons of both arrangements.
PARTNERSHIPS
FARM TENANCIES
ASSETS
FARM BUSINESSES
INHERITANCE TAX ACT 1984
CAPITAL GAINS TAX ACT 1992
TAX RELIEF
FINANCE ACT 2003