Estate days round up

During November, we held workshops focusing on Accounting for Estates, each held over 2 days. This involved 16 experts from 7 specialisms across Albert Goodman, and attendees ranged from finance directors to bookkeepers, land agents, and consultants.

This session covered various capital taxes such as capital gains tax (CGT), stamp duty land tax (SDLT), and the very topical Inheritance Tax (IHT). Following Rachel Reeves’ first Labour budget, Sam Kirkham explained the potential impact of the proposed changes to business property relief (BPR) and agricultural property relief (APR) on Estates. As expected, the impact was significant, raising concerns about how Estates would fund such liabilities. Key takeaways included assessing the impact, considering options, such as early succession planning, life insurance, and utilising heritage reliefs.

After a tax-focused morning, we welcomed Dave Eva from our management information systems (MIS) team. Dave demonstrated how Power BI, Excel Power Query, and Power Pivot can automate and streamline internal systems, processes, and functions to provide meaningful data for decision-makers within the Estate. It is amazing what technology can do when you know how!

To round up the day, Tom Stone from our Farms & Estates team discussed the different types of financing available to Estates, what lenders are looking for, and considerations when seeking finance for large projects. Planning for this is key!

We began the day at the source records, working through accounting and tax adjustments to arrive at the taxable profit, sharing some Xero top tips along the way.

We discussed different capital allowances, providing an understanding of the allowances available on capital expenditure commonly seen across Estates, and considerations for large projects.

Our experts highlighted important areas and potential pitfalls in the following areas:

• Associated companies and corporate structures
• Benefits in Kind
• Annual Tax on Enveloped Dwellings and the available reliefs
• Registration of Trusts and those that are not obvious Trusts.

These topics come with various tax implications, which sparked several broader discussions in the room.

Richard Taylor, one of our VAT experts, covered a vast amount, starting with Partial Exemption and detailing what should and shouldn’t be included in these calculations.

He also provided insights on the capital goods scheme, options to tax, expenditure with private use, and the treatment of motor and property expenses.

Day two was packed with insightful discussions and practical tips to deepen our understanding of these critical topics.

We really enjoyed seeing everyone at the workshops, meeting new people and catching up with our existing estate clients. We look forward to hearing your feedback from those who attended.

If you did not have the opportunity to attend these workshops and would like to be kept up to date with future events, then please do get in touch with anyone in the team.