The majority of farming and rural businesses in the UK are family run, often involving up to three generations in the business at any one time.
Planning for the day when the next generation takes over the reins is something that needs to be carefully considered and planned, especially where there may be several family members keen to have a role in the business.
Succession planning needs to consider how the business will sustainably provide incomes for multiple family members, consider potential tax implications where shares and/or property may be being transferred, and whether there needs to be a management restructure to the business.
Where land is tenanted under an Agricultural Holdings Act tenancy, there are also complex legislation and rules regarding the criteria for succeeding to the tenancy, and it is imperative that plans are in place many years in advance to make sure all eligibility and suitability rules can be satisfied.
We have experience in providing advice on tenancy and business succession planning. Please contact us for an initial discussion regarding succession planning.