Delegates at an inaugural ‘Diversification and Succession’ seminar were told that communication, planning and expert legal, financial and tax advice are essential to build foundations that will protect assets and future-proof a family farm or rural enterprise in today’s challenging economic landscape.
Hosted by Sydney Mitchell and held at Becketts Farm, one of the West Midlands agri business diversification success stories, the ‘Succession and Diversification - Protecting the Next Generation’ event took a deep dive into the opportunities of diversification for rural economy businesses, and delivered a timely update on the tax and legislative position for inheritance tax (IHT) as part of farming families’ succession and future planning.
The session took place at a time when the rural and farming sectors and communities are facing yet more economic, tax and financial challenges, including the government’s plans to change reliefs on IHT for farms and farm enterprises.
As such many are now exploring additional income streams as part of plans to future-proof a family farming enterprise - recent Office for National Statistics data reveal a record 6,365 agriculture, forestry, and fishing businesses ceased trading in the year up to June 2025, and that 71% of farms in England had some diversified activity last year (Government statistics), including renting buildings for non-agricultural purposes and generating solar energy.
Beckett Farm’s managing director Adrian Beckett, the fourth generation of the Beckett family to lead the thriving Becketts Farm and Farm Shop agri enterprise, was the seminar’s guest speaker.
Adrian shared Becketts’ inspirational diversification story over its 80 year history, and how the business has become a ‘destination’ for families from across the region for food and leisure activities, delivered by its 125-strong workforce.
He said he knows all too well the importance of keeping an open mind to future opportunities and to facing up to local, national as well as a business’ own specific challenges and changes, which is better than simply “burying your head in the sand” he said.
In particular, Adrian cited specific challenges for all rural and agri businesses looming on the horizon to include the government’s changes to IHT, headwinds facing all businesses linked to food, retail and hospitality, the upcoming Employment Rights Bill and this year’s changes to National Insurance, National Minimum Wage and employee tax, and that farm acquisition and land development opportunities are ones to watch.
Also speaking at the event were Sydney Mitchell’s Lorna Payne (Partner and Wills, Trusts and Probate lawyer), Shilpa Unarkat (Partner and Commercial Property/Real Estate lawyer), Benazir Mir (Solicitor, Corporate) and Gemma Whitchurch (Partner and Family lawyer). Tammy Shaw of independent accountancy firm Thomas & Young delivered an overview of the tax considerations and tax planning options for farming families’ succession and diversification plans.
A common thread for each of the speakers was the importance and value for family farming business to have sometimes difficult conversations and to communicate about their ideas, fears, worries and plans for the future.
All the speakers stressed the importance of having up to date wills and lasting powers of attorney, and, as part of a future financial plan that could help minimize the financial impact of the revised IHT laws that are likely to most impact mid-sized farm and agricultural business.
Delegates were also told about the value and role of trusts, which can be useful in future proofing a farm’s assets – land, buildings and businesses.
The speakers also stressed the benefits of pre- and post-nuptial agreements for the next generation entering marriages or living together, and explained the operational and financial pros and cons of registering a business as either a partnership, a limited liability partnership (LLP) or limited company.
Over the coming weeks, we will publish a series of articles that delve into the detail of the advice shared by Sydney Mitchell’s team of experts at the event.
Get in touch
In the meantime, for information, advice and help in setting up an LPA, writing a will, future/succession planning options and finances, IHT, commercial planning laws, and corporate guidance: Contact us | Sydney Mitchell Solicitors. Sydney Mitchell has offices in Birmingham City Centre, Sheldon and Shirley.
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