I12.604 Other factors

I12.604 Other factors

The potential application of the reservation of benefit provisions (discussed fully at I3.4) should be considered very carefully in connection with lifetime gifts of agricultural property. This is particularly relevant where land is contributed to a family farming partnership including the donor and his children and the donor wishes to retain a profit share which exceeds his entitlement under the capital account. Wherever possible the family members should enter into the partnership arrangements on fully commercial terms.

Problems are encountered in many family businesses (and particularly in farming) when it is intended that one child will take over

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