Contact our offices
Main office
COLBURN
5 & 6 BAILEY COURT
COLBURN BUSINESS PARK
RICHMOND
NORTH YORKSHIRE
DL9 4QL
Estate Agency Offices are located in
BARNARD CASTLE, BOROUGHBRIDGE & RICHMOND
Residential Management Team
Our Offices
The Budget 2025 offered limited encouragement for the agricultural and wider rural sector, with few measures aimed at driving growth or incentivising investment. For many farm businesses and rural estates, this will feel like a missed opportunity at a time when profitability is under pressure from rising costs and stagnating income, with those challenges compounded by reform to environmental payments and Inheritance Tax changes.
Minimum Living Wage (MLW) increases and the persistent shortage of labour remain significant concerns for farmers. These factors are squeezing margins and making it harder to maintain competitiveness, particularly for labour-intensive enterprises such as livestock and horticulture.
One positive development was the announcement that the £1m 100% Relief Allowance for Agricultural Property Relief (APR) and Business Property Relief (BPR) can now be transferred between spouses. This change provides greater flexibility in succession planning and offers a degree of reassurance for those seeking to protect family assets from future Inheritance Tax (IHT) liabilities, though the rest of the reforms stand unchanged.
Elsewhere, the 2% tax surcharge on dividends, savings, and property income will add further pressure to diversified businesses and estates that rely on these income streams. This is difficult to understand when farmers are being told that they should plan for succession, but any such investments will now be subject to additional income tax charges.
When combined with the absence of new capital allowances or incentives for growth, investment and innovation, the message from the Chancellor is clear: businesses must take responsibility for their own resilience.
Now more than ever, farmers and estate owners should focus on running their operations as efficiently and profitably as possible. This includes reviewing business structures, controlling costs, and exploring opportunities to maximise returns. At the same time, implementing a clear strategy to manage and mitigate future IHT liabilities is essential to safeguard assets for the next generation.
In a challenging economic environment, proactive planning is key. If you are considering succession planning, tax mitigation, or improving business efficiency, now is the time to act.