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Succession stakes: how to safeguard your income after transferring the family farm

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Cashflow: One good option for both generations is to optimise the use of the tax bands. Directing a share of the farm profits to the parent/s can deliver significant tax savings for the active farmer

Cashflow: One good option for both generations is to optimise the use of the tax bands. Directing a share of the farm profits to the parent/s can deliver significant tax savings for the active farmer

Cashflow: One good option for both generations is to optimise the use of the tax bands. Directing a share of the farm profits to the parent/s can deliver significant tax savings for the active farmer

Government and EU policy is very much focussed on encouraging farmers to hand over or share the reins with the next generation sooner rather than later. This is evidenced by the various attractive incentives such as the Stamp Duty exemption and the Succession Farm Partnership Scheme, along with various schemes to grant young farmers access to higher rates of grants and subsidies. Such aids are very welcome but in many instances the farmer is reluctant to transfer his land because the financing of his existence post transfer may present a challenge. Many will wait until they are eligible for the State Pension which means that their successor could be in his or her early 40s by that stage. In any event, most farming couples will not survive on the State pension alone so how does one deal with this aspect of succession?

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