Presentations from Louise Speke (CLA Chief Taxation Adviser), Michael Mack (Farm and Rural Business Consultant at Smiths Gore), and Rachel McKillop-Wilkin (Senior Associate at Birketts Solicitors) from the CLA Succession Event held at Elveden Village Hall on 3 December 2014.
Productivity, Conflict and Negotiation in Property ManagementDavid Faulkner
The presentation is from the Property Management Workshop that David Faulkner is conducting across New Zealand in 2016. The workshop is based on working more efficiently and effectively within the Property Management industry and teaches you some great tips on negotiation, something we do every day in Property Management.
Kelvin Leibold - Intergenerational Transfer and Estate PlanningJohn Blue
Intergenerational Transfer and Estate Planning - Kelvin Leibold, ISU E&O Farm Management, from the 2014 Iowa Cattle Industry Convention, December 8 - 10, 2014, Des Moines IA, USA
More presentations at http://www.trufflemedia.com/agmedia/conference/2014-iowa-cattle-industry-convention
Productivity, Conflict and Negotiation in Property ManagementDavid Faulkner
The presentation is from the Property Management Workshop that David Faulkner is conducting across New Zealand in 2016. The workshop is based on working more efficiently and effectively within the Property Management industry and teaches you some great tips on negotiation, something we do every day in Property Management.
Kelvin Leibold - Intergenerational Transfer and Estate PlanningJohn Blue
Intergenerational Transfer and Estate Planning - Kelvin Leibold, ISU E&O Farm Management, from the 2014 Iowa Cattle Industry Convention, December 8 - 10, 2014, Des Moines IA, USA
More presentations at http://www.trufflemedia.com/agmedia/conference/2014-iowa-cattle-industry-convention
How to Effectively Fire Problem Employees and LEGALLY Win Labor Cases.PoL Sangalang
A Survival Guide to Philippine Labor Law for Business Owners and Managers. How to Avoid Costly Illegal Dismissal Cases. By Atty. PoL Sangalang, Business Lawyer & Legal Coach Philippines.
As the charity sector continues to manage the impact of the pandemic, many charities are facing financial uncertainty. In this context many senior leaders, to ensure their charity’s sustainability, will be considering collaboration and merger. In this webinar, in association with Bates Wells, we aim to answer questions such as: When should a charity in crisis consider merging? What are the alternatives? How can you make the best decision for your organisation? You will also hear about a new online decision-making tool which will help organisations chart the options open to them in a tight financial spot.
Learn how to tackle all of the steps to building your own new, custom home. We cover roles, decision-making, monetary considerations, buying land and more!
[On-Demand Webinar] What kind of investment property is right for you webinar...Emily John
In this on-demand webinar you'll learn about different kinds of investment properties, and how to choose one that suits your budget and goals. We will also show you how we provide an end-to-end property solution to get you into the market sooner with low risk investments.
Albion provides a sounding board and guidance for our entrepreneurial clients with a specific focus on the steps a business owner should take to "clean up" a business for eventual transfer to new ownership whether via gifting, internal or third party sale, or public offering.
Is This Conversion The Right Thing To Do?CLA - East
Chris Leney, Partner, Robinson & Hall, presentation on Permitted Development Rights for change of use of farm buildings, given at CLA East's Planning for the Future event in Essex on 18 November 2014.
Permitted Development Rights for Change of use of Farm BuildingsCLA - East
CLA Head of Planning Fenella Collins MRICS presentation on Permitted Development Rights for change of use of farm buildings, given at CLA East's Planning for the Future event in Essex on 18 November 2014.
How to Effectively Fire Problem Employees and LEGALLY Win Labor Cases.PoL Sangalang
A Survival Guide to Philippine Labor Law for Business Owners and Managers. How to Avoid Costly Illegal Dismissal Cases. By Atty. PoL Sangalang, Business Lawyer & Legal Coach Philippines.
As the charity sector continues to manage the impact of the pandemic, many charities are facing financial uncertainty. In this context many senior leaders, to ensure their charity’s sustainability, will be considering collaboration and merger. In this webinar, in association with Bates Wells, we aim to answer questions such as: When should a charity in crisis consider merging? What are the alternatives? How can you make the best decision for your organisation? You will also hear about a new online decision-making tool which will help organisations chart the options open to them in a tight financial spot.
Learn how to tackle all of the steps to building your own new, custom home. We cover roles, decision-making, monetary considerations, buying land and more!
[On-Demand Webinar] What kind of investment property is right for you webinar...Emily John
In this on-demand webinar you'll learn about different kinds of investment properties, and how to choose one that suits your budget and goals. We will also show you how we provide an end-to-end property solution to get you into the market sooner with low risk investments.
Albion provides a sounding board and guidance for our entrepreneurial clients with a specific focus on the steps a business owner should take to "clean up" a business for eventual transfer to new ownership whether via gifting, internal or third party sale, or public offering.
Is This Conversion The Right Thing To Do?CLA - East
Chris Leney, Partner, Robinson & Hall, presentation on Permitted Development Rights for change of use of farm buildings, given at CLA East's Planning for the Future event in Essex on 18 November 2014.
Permitted Development Rights for Change of use of Farm BuildingsCLA - East
CLA Head of Planning Fenella Collins MRICS presentation on Permitted Development Rights for change of use of farm buildings, given at CLA East's Planning for the Future event in Essex on 18 November 2014.
HSBC UK's Head of Agriculture Allan Wilkinson's presentation to the 'Setting Your CAP' event at Stoke Rochford Hall, Lincs, on Thursday 23 October 2014.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
8. michael.mack@smithsgore.co.uk07720 496510
Take Home Points
•You don’t have a rehearsal
•Start the process as early as you can.
•Make sure you understand both individual and family objectives.
•Each of the four parts of a succession plan must relate to and respect the other elements.
•Implementing a succession plan can take over 15 years.
•A good succession process will increase the value of your business and family.
•At the end of the plan the retiring generation must leave.
11. Tax issues to consider
Transfers on Death
Inheritance tax
•Agricultural Property Relief (“APR”)
•APR and the Farmhouse
•Business Property Relief (“BPR”)
Lifetime transfers
Capital Gains tax
•Entrepreneurs Relief
•Business Asset Roll-Over Relief
•Gifts Hold-Over Relief
12. Agricultural Property Relief
What is APR?
•Relief from Inheritance Tax (“IHT”)
•Applies to “agricultural value” of property
•100% or 50%
When does APR apply?
•Property must be agricultural in nature
•Occupation condition: two years immediately before transfer
•Ownership condition: 7 years immediately before transfer
•Property must have been used for agricultural purposes throughout
In theory APR would apply to a farmhouse satisfying these conditions
13. What is Agriculture for APR?
Farming defined as the occupation of land wholly or mainly for the purposes of husbandry
•Includes activities normally recognisable as farming such as growing crops and the raising of farm livestock
•Includes market gardening and the intensive rearing of livestock or fish on a commercial basis for averaging only
•Grazing horses is not an agricultural use of land
14. APR and the Farmhouse
•Farmhouse : “a dwelling for the farmer from which the farm is managed” (Rosser v IRC)
•The problem: the farmer vs. the lifestyle farmer
15. APR and the Farmhouse –farmer or lifestyle
Farmhouse must be of a “character appropriate”
•Size and nature
•Profitability of land vs. cost of farmhouse
•History
Agricultural value
•“The value which would be the value of the property if the property were subject to a perpetual covenant prohibiting its use otherwise than as agricultural property”
•Hope value –development value etc.
16. Business Property Relief
What is BPR?
•A relief from IHT
•For certain interests in qualifying tradingbusinesses
•50% or 100%
•APR is applied beforeBPR
•Can bridge the gap between agricultural value and market value
•Will NOT apply to farm house (may apply to area wholly and exclusively used for trade e.g. Farm Office)
17. Business Property Relief
How to qualify?
(1) a business or an interest in a business e.g. a sole proprietor’s business; and
(2) owned by the transferor for a minimum period of two years immediately preceding the transfer or death
NOTE:A business does not attract BPR if it consists wholly or mainly of dealing in land or buildings or making or holding investments.
18. Importance of succession planning
How to ensure business continuity?
•Lifetime gifts
•Partnership Agreements
•Will
19. Lifetime Gifts
Consider CGT implications?
•Are reliefs available?
oGifts Hold-over Relief
oEntrepreneurs Relief
Consider Gift with Reservation of Benefit rules
20. THANKYOU
16 Belgrave Square
London SW1X 8PQ
Tel 020 7235 0511
Fax 020 7235 4696
Email mail@cla.org.uk
Website www.cla.org.uk
24. Clear Legal Advicewww.birketts.co.uk
Successor?
•Have you identified your successor?
•Do they know?
•Do the other members of the family know what your plans are?
•Equality and fairness are not the same thing.
25. Clear Legal Advicewww.birketts.co.uk
Successor?
•Do you have a strategic management plan?
•How often do you review it?
•Who is involved in the review?
•Review may result in amendment.
26. Clear Legal Advicewww.birketts.co.uk
Land and Asset Ownership
•Can you identify the land that you own?
•Is it in the right ownership?
•What other assets do you own?
•Why is this important?
28. Clear Legal Advicewww.birketts.co.uk
Business Structure
•Occupation of partnership property
•Residential
•Farming operations
•Option to buy out on retirement
•Business Property Relief and property on the balance sheet
33. Clear Legal Advicewww.birketts.co.uk
Wills
•Who needs them?
•We all do!
•Do you have one?
•Where is it?
•When was it last reviewed?
•Does it dovetail with your partnership agreement?
34. Clear Legal Advicewww.birketts.co.uk
Change in Circumstances
•Have you got married since you made your will?
•Do you have assets or property abroad?
•Do you have a foreign Will to deal with these assets?
•Have you appointed the appropriate executors?
46. The planning stage
•Avoid holding meetings in a family home.
•Make sure all relevant parties are present.
•Think about using a facilitator for the meeting and process.
•Set an agenda for meetings and make sure all of the family see the agenda before the meeting.
•Set rules for the meeting and the process.
•Don’t try to have an answer for everything.
•Don’t take too big a step in one go.
•Try and keep discussions to the whole group within the meetings.
•At the end of each meeting, thank everyone and set a date, time and venue for the next meeting.
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47. Family Rules?
Discuss as a group the type of rules which would help to successfully run a family business meeting.
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48. The key to making this approach work
•Communication
•Communication
•Communication
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49. Conflict: the inevitable issue
Conflict theory begins by asserting that conflict in families is the normal state of affairs.
Active Conflict
Passive Conflict
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50. Sources of Conflict
CONFLICTFamily
•Age
•Values
•Children
•Accommodation NeedsWork
•Work Ethic
•Long Term View
•Decision Making
•Power
•Economic Performance
•Employees
•Attitude to RiskMe
•Extended Family
•Health
•Social Demands
•Stress
•History
51. Conflict: the inevitable issue
•To resolve a conflict the parties must come to a mutually agreeable solution.
•Negotiationis the process by which a conflict may be resolved in a mutually agreeable manner.
52. The Process of resolving Conflict Within a Family
•Step 1: State the problem and who's involved
•Step 2: Establish ground rules
•Step 3: Brainstorm solutions to the problem.
•Step 4: Evaluate the risks and benefits of each potential solution.
•Step 5: Reach a solution as a team.
•Step 6: Identify what each family member will do to work on the solution.
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53. Important Notes
Warnings
•Seek professional help if you are not able to resolve the conflict peacefully.
Tips
•Use "I" messages instead of "you" messages to express your thoughts and feelings.
•The word “and” ties people together. “But” holds people apart.
•Find a solution that will benefit all.
•Do not destroy the relationship with those involved in the conflict.
•RELATIONSHIPS ARE IMPORTANT
•MUTUAL PROTECTION IS BETTER THAN MUTUAL DESTRUCTION
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54. Concluding Thoughts
•The principal farmer is responsible for making sure the succession process is implemented.
•This does not mean they need to do all the work.
•Think carefully about the role of in-laws. Love them or not they are part of your family.
•Set the objective as a family, but make decisions as a business.
•The kitchen table is not the place for succession planning.
•The new entrant has to prove themselves.
•Conflict cannot be swept under the carpet
•Use professionals to support your plans.
•Remember that everyone is scared of getting it wrong.
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