Trust and tax planning for landed estates
Produced in partnership with Alexander Caton of Charles Russell Speechlys
Trust and tax planning for landed estates

The following Private Client guidance note Produced in partnership with Alexander Caton of Charles Russell Speechlys provides comprehensive and up to date legal information covering:

  • Trust and tax planning for landed estates
  • Ownership
  • IHT planning on death
  • Lifetime IHT planning
  • Maximising APR
  • Maximising BPR
  • IHT reliefs for heritage property

A landed estate typically consists of a holding of some hundreds or even thousands of acres of land, held by or for a family over the generations. Within that there is usually some or all of a 'main house', land, farms and farmhouses, agricultural buildings in varying degrees of repair, woodlands, let residential property, small scale let commercial property, sporting rights and in-hand commercial undertakings.

The landed estate was one of the prime targets of Lloyd George’s People’s Budget of 1909 and over time, estate duty (ED), capital transfer tax (CTT) and inheritance tax (IHT) have led to the break-up of virtually all the large landed estates. However, perhaps ironically, IHT now works in a way such that with careful planning it need barely touch a well-structured landed estate. It remains to be seen how long this will remain the case in light of the second report of the Office of Tax Simplification (OTS) published on 5 July 2019 and the report of the All-Party Parliamentary Group for Inheritance & Intergenerational Fairness published on 29 January 2020.

Ownership

Some landed estates are held privately with the legal and beneficial ownership of the estate in one person’s hands. Some, particularly where the estate has been held for some generations, are held legally by trustees with a life tenant enjoying the benefit of

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