COLUMN: Succession planning for family farms

The Government estimates around 28 per cent of farms will be affected, approximately 58,500, but the NFU and the Country Land and Business Association warn that the true figure could be much higher.

The average farm in England is now worth £2.2 million and a single farm owner can currently pass on up to £1.5 million tax-free. For the average farm, this still leaves £800,000 exposed to tax, as the Residence Nil-Rate is reduced by £100,000, which is a potential bill of £160,000, with the option to pay over 10 years.

For jointly owned farms, the threshold doubles to £3 million, (with properly structured wills), offering more protection, but bigger problems arise when farm owners do not have succession plans in place at all.

The average UK farmer is 59, with over 40 per cent aged 65 or older, and it’s thought that one in four farmers have no will, while two-thirds of farms with an identified successor lack a formal plan.

Succession is not a single event; it’s a phased transition of ownership, knowledge, and leadership. Seeing it in this manner is a crucial distinction.

A proactive succession plan outlines not just who will inherit, but who will operate, who will own, and how that evolution will be funded and structured.

The legal and financial structure of a farming business plays a central role in its long-term viability. From partnerships and limited companies to discretionary trusts, each setup has vital implications for control, liability, and IHT exposure.

Given the upcoming APR and BPR caps, revisiting your farm’s ownership structure could help optimise the available reliefs.

Likewise, the absence of formal documentation can lead to costly misunderstandings even when a plan is in place. Succession plans should include a current and detailed will, partnership or shareholder agreements, lasting powers of attorney (LPA), and plans for asset ownership and control, and these must be kept up to date.

Securing yours and the farms future

Succession planning is more than documenting how assets will be passed down; it is also the transfer of leadership skills. Today’s farming business leaders need specific expertise not just that of crop rotation or livestock care, but in data analysis, environmental compliance, subsidy frameworks, and financial management.

Look out for government schemes such as the New Entrant Support Scheme, land-matching programmes, and industry mentorships, which play a role in helping successors build experience and credibility.

A well-structured, well-communicated succession plan builds resilience. It supports continuity, preserves relationships, and helps secure financial outcomes; not just for the current generation, but for those to come.

At Duncan & Toplis, we work with farm businesses across the country to put in place tailored plans that reflect each family’s needs and values. If you haven’t reviewed your succession strategy recently, or if you don’t yet have one, now is the time to start the conversation.

This column is provided by Daniel Sharpe, Agriculture Business Services Director, Duncan & Toplis