The document discusses succession planning for farming businesses. It outlines some common barriers to passing the farm business to the next generation like children not wanting it or tax issues. It then provides tips for introducing children into the business gradually through employment or partnership. The document also discusses options for retaining ownership of land like family business tenancies and limited companies. It covers inheritance tax considerations and asset protection planning.

2. SUPPORTING THE FARMING INDUSTRY SUCCESSION PLANNING www.winterrule.co.uk

3. SPEAKERS: Robert Cowie Partner specialising in advice to the agricultural community John Endacott Specialist Tax Partner David Bullen Corporate Finance Manager

4. Almost 1/3 of farmers have no succession plan in place. Source: Institute of Chartered Accountants Farm Business Group Survey Autumn 2009 Succession

9. Profit allocations Profit 60,000 Stage 1 – salaried (or fixed share) Son/daughter salaried partner 12,000 Balance of profit – Mr 24,000 Mrs 24,000 48,000 60,000 Stage 2 – profit share only, not owning any assets “ Interest” – Mr 9,000 Mrs 6,000 15,000 Balance of profit – Mr 15,000 Mrs 15,000 Daughter/son 15,000 45,000 60,000

10. /Continued…. Stage 3 – profit share with equal share of partnership assets Profits – Mr 20,000 Mrs 20,000 Son/daughter 20,000 60,000

21. What is asset protection? “ The taking of steps to reduce the risk of assets being dissipated by family members or accessed by claimants, in particular, a divorcing spouse or creditor”

22. “ Put not your trust in money, but put your money in trust…” Sir Oliver Wendell Holmes Sr. (physician, professor and author)

26. RURAL DEVELOPMENT PROGRAMME FOR ENGLAND (2007-2013) David Bullen Corporate Finance Manager, Winter Rule

28. The April Announcement Following months of speculation, Defra have now released details on the future of the RDPE, including its delivery and budget for 2011/12. The key message as far as budget is concerned, is that Defra are able to make a commitment to continue funding all elements (Axes) under the RDPE for the remainder of the Programme. However, as they have had to reduce budgets in some areas due to cuts in public spending, funding for the Programme will be under pressure for the rest of the Programme period to 2013 in most of the South West Region. However, Cornwall and the Isles of Scilly has retained its existing budget of £55 million so there is still scope for new projects to be supported. As all projects must be completed by the end of 2013 this brings challenges of its own so if you do have a project idea now is the time to start discussing whether the RDPE can help. If you do have an idea please contact Marilyn Pryor at Business Link on 0845 600 9966. From this summer, the programme will move towards national delivery arrangements to ensure a nationally consistent approach to delivery of RDPE. It is understandable that this may raise concerns regarding ongoing access to support available while this takes place, but Defra and the RDA are doing everything they can to minimise disruption and address any concerns that people may have. Full details of the budget, the transitional arrangements and the future of the RDPE in the South West can be found in the RDA’s March 2011 newsletter Rural Development Gateway - Reduced RDPE to continue. On another note, there will a Rural Development Pavilion at this year’s Royal Cornwall Show on 9th, 10th and 11th June (adjacent to the Member’s Pavilion); so be sure to come along to the stand for the latest update on RDPE or any information, advice and guidance on the support available to farms and food businesses in Cornwall and the Isles of Scilly