Farming & agriculture

Agriculture accounting

**The 2024 Autumn Budget introduced significant changes for the farming and agriculture sector, particularly affecting inheritance tax. Discover our key services and further information below.**

Inheritance Tax

Our comprehensive inheritance tax planning services are designed to help you navigate the complex landscape of UK tax law and preserve your wealth for future generations.

Find out how our expert team can help with your agricultural or farming business.

Inheritance Tax Planning >

Agricultural Property Relief

Find out everything you need to know about the upcoming changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) and how to structure your business in an inheritance tax friendly manner.

 

Changes to Agricultural Property Relief (APR) and Business Property Relief (BPR)

Our specialist agricultural team, many of whom are from farming and rural backgrounds, provide accounting and taxation advice tailored to the agricultural sector.

At Ellacotts, we understand the unique challenges and opportunities faced by the agricultural sector. Our specialist knowledge allows us to address these unique challenges faced by clients in agribusiness. Our strong links to the farming community have allowed us to develop our expertise in all aspects of finance and taxation related to agriculture allowing us to provide tailored advice to our clients. We have supported numerous clients in the agricultural sector, showcasing our proactive approach to providing tailored advice and assistance.

Today we are market leaders in the agricultural sector and represent the interests of a large number of farmers, landowners, landed estates and other agri-businesses, both regionally and nationally. We also provide advisory services tailored to the needs of rural business clients, helping them adopt modern practices and diversify their operations to achieve success in a competitive and changing market.

The services we offer include:

Inheritance Tax and succession planning

The most tax-efficient way to pass on your business will vary significantly from one family to another, and farming families face unique challenges and considerations that require careful planning to ensure that your business remains viable while protecting your family’s interests.

We work closely with your family’s land agent and solicitor to ensure that legal documents such as partnership agreements, wills, trust deeds, and lasting powers of attorney reflect the needs and wishes of your family and your business.

We also help minimise tax liabilities during succession planning by structuring transactions to reduce capital gains tax exposure and ensuring proper tax return filing. This includes giving consideration to the next generation, emphasising the importance of developing strategies that protect assets and ensure a smooth handover. This includes giving consideration to:

  • Inheritance tax reliefs (APR, BPR)

  • Capital gains tax implications and reliefs

  • Business structure including trusts

Property & land transaction planning

Land and property assets are a key part of most agricultural businesses. Navigating tax obligations during property transactions is crucial for ensuring tax compliance and avoiding unintended tax charges. There is potential to save significant amounts of tax with the right planning.

We can provide you with comprehensive guidance on:

  • Land purchases, sales, and lettings

  • Agricultural tenancy agreements

  • Estate planning and rural property development

  • Capital gains tax and reliefs

  • Tax-efficient inheritance and succession planning

Our expertise also extends to helping clients maximise opportunities for business property relief, ensuring they benefit from tailored tax relief options.

Benchmarking and gross margin accounts

To enable you to make important and informed financial decisions, we provide gross margin accounts, which show in detail your different enterprises and the contribution they make to business profits.

These accounts allow us to benchmark your data against other farmers and then review how the farm has performed. Our specialised teams provide support for benchmarking and financial analysis, ensuring you receive comprehensive insights.

The information helps the process of making informed strategic business decisions such as investment in machinery or purchasing land.

Each year we hold a benchmarking event where we share the overall results of the harvest in financial terms, offering insight into how the industry is performing.

The 2022 Harvest – benchmarking

Renewables and diversification

As the agricultural landscape evolves, more and more farmers are diversifying their businesses by investing in renewable energy projects, such as wind, solar and biodiversity net gain (BNG). Anaerobic digestion is also a valuable opportunity within the renewables sector.

If you are considering investing in a renewable energy project, we can talk you through the relevant business and tax planning points.

Early involvement will ensure you implement the optimum trading structure for your new enterprise.

In addition, we can explain the tax implications of the new venture, which is particularly important when land is being taken out of agricultural production. Diversification and renewable energy projects contribute significantly to the growth of agricultural businesses by providing new investment opportunities and tailored support to help them thrive in a competitive environment.

Accounting and bookkeeping for agriculture

We offer accounting and bookkeeping services including accounts preparation to ensure that your annual compliance needs are met. This includes tax return preparation, and we can offer income tax planning opportunities and reviews. Our tax advice is tailored to the unique needs of agri-business clients, emphasising the importance of tax returns in agricultural accounting, particularly for complex land ownership transactions and optimising tax liabilities.

We also provide guidance on Making Tax Digital (MTD) specifically for farmers and agribusiness, helping clients comply with MTD requirements and maintain accurate financial records.

By outsourcing financial and accounting management services, including payroll, to Ellacotts, you have more time to concentrate on strategic issues and growing your agri-business.

Ellacotts Wealth Planning team can help you protect and manage the wealth that you have invested in your farm business and private portfolio.

Contact us today to discuss how we can assist with your agriculture accounting for your business.

Speak to an expert

amy-brown

Amy Brown

Director

Kettering

Andrea Davies

Manager

Banbury

claire-rigby

Claire Rigby

Partner

Banbury

daniel-martin

Daniel Martin

Partner

Banbury,Stratford-upon-Avon

edward-nichols

Edward Nichols

Manager

Banbury

helen-king

Helen King

Consultant

Banbury

kerry-o'reiley

Kerry O'Reilley

Partner

Banbury,Kettering

laurence-edmunds

Laurence Edmunds

Director

Kettering

louise-hosking

Louise Hosking

Director

Banbury

mark-dickin

Mark Dickin

Partner

Banbury

Sara Burgess

Manager

Kettering

Tom May

Manager

Banbury

zoë-keys

Zoë Keys

Senior Supervisor

Banbury

Ready to get started?

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Related news

VAT penalties update: Points mean penalties

VAT penalties update: Points mean penalties

The way in which HMRC charges penalties for late VAT return submissions and late VAT payments has changed. All VAT return periods starting on or after 1 January 2023 will be caught under the new VAT penalty system.

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The 2022 Harvest – benchmarking

The 2022 Harvest – benchmarking

We have now completed our gross margin accounts for the 2022 harvest across our portfolio of arable clients. The database for 2022 is based on an area of over 90,000 acres.

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Our accreditations

We are proud to be recognised as a Top 100 Accountancy firm in the Accountancy Age 2024 survey. We are longstanding and active UK200Group members, and affiliate members of AGN, an international association of accountants. We have One Star Best Companies status, reflecting our commitment to being a great workplace. As a Xero Platinum Partner, we are dedicated to supporting our clients in online accounting.

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Banbury

Countrywide House
23 West Bar Street
Banbury
Oxfordshire
OX16 9SA
T: +44 (0)1295 250401

Birmingham

Cornwall Buildings
45 Newhall Street
Birmingham
B3 3QR
T: +44 (0)121 2894455

Kettering

Vantage House
2700 Kettering Parkway
Kettering Venture Park
Kettering
Northamptonshire
NN15 6XR
T: +44 (0)1536 646000

London

Suite 100
99 Bishopsgate
London
EC2M 3XD
T: +44 (0)20 36937315

Stratford-upon-Avon

Elizabeth Court,
Church Street,
Stratford-upon-Avon,
CV37 6HX
T: +44 (0)1789 713555