Lincolnshire Show highlights strength and unity of rural communities

A leading legal expert has praised “resilient and optimistic” rural communities in the face of ongoing uncertainty.

Amy Allison, Office Client Services Director at Knights, specialises in all matters landed estates and agriculture.

Speaking after attending the Lincolnshire Show last week, she said the resolve of those she spoke with was clear for all to see:

“There has been a lot of negativity over the past couple of years for rural and agricultural communities to deal with. However, my experience of the Show this year was that there was a sense of determination and looking to the future and there's still a lot that we, as practitioners, can do to help people to help themselves.

“I think most people are already involved in planning as much as they possibly can to try and mitigate the issues that are arising as a result of the changes that have been brought in by this government but there's still more that can be done.

“In terms of preparation, the main thing is about making sure you've reviewed everything that you own at the moment and really understand your assets. We see a lot of people who believe that their assets are held in a particular way, particularly if there are businesses and multiple owners involved, but when they come to looking at it properly, it's not actually as they thought. Being aware of how your assets are owned and their value is more important now than ever and this will undoubtedly be central to all discussions from a tax and succession perspective. Equipment and machinery, especially with the increase in technology and robotics in farming, are very valuable assets and need to be factored into the valuations and how these will impact on the availability of the agricultural and business property reliefs that remain available.

“Landed estates have got their own unique challenges ahead in terms of cash flow and funding. Often there are multiple long-running complex family trusts holding agricultural and business assets where the trustees and all advisors involved are having to change their approach to funding as they are now faced with some new and very large tax charges over the next decade and beyond – so it’s vitally important to look at proper asset valuations, cash flow forecasting and raising funds in readiness for these significant tax events. We are seeing a shift in focus for some estates with heritage assets, back to considering whether conditional exemption and the use of Heritage Maintenance Funds might provide a realistic option for deferring inheritance tax and capital gains tax whilst protecting and maintaining objects, land and buildings that meet specific criteria.

“I think the main thing that stands out from my time at the Show especially, is that rural communities are so incredibly resilient, and I think the fact that everybody can pull together and share ideas and strategies for navigating these changes whilst keeping each other positive and optimistic about the future, is fantastic.

“There was a lot of that going on at the show and it was an incredible couple of days to see everybody turning out, enjoying everything that was on offer there. Even in the face of uncertainty about how all these changes will unfold and what might happen next, there is still an overwhelming sense of community and support amongst those involved in rural and agricultural matters."