Investment risks farmland IHT exemption

The increasing practice of investors purchasing farming land to avoid inheritance tax could result in the IHT exemption on farmland being removed altogether by HMRC.

In some areas farmers are finding themselves being priced out of farming land because of wealthy investors seeking to take advantage of the tax exemption. Those same farmers are now also facing the possibility of the inheritance exemption on farmland and farm houses being removed if the purchase activity of non-farming investors continues at the current rate.

The inheritance tax exemption on farm houses has already come under the spotlight in a number of cases where the question has arisen as to how much farming activity must be going on for the exemption to apply. Many farmers are said to be working beyond retirement in order to ensure they don't lose their IHT exemption.

If you live in Northern Ireland and require advice in respect of inheritance tax, or tax planning, contact one of the tax advisors at Wilson Nesbitt by calling 0800 840 9288.