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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
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Recent changes to Inheritance Tax (IHT) policy, combined with continued pressure on profitability across several agricultural and landed sectors, are acting as a catalyst for more open – but often uncomfortable – discussions around succession, ownership and governance. In our experience, these pressures are also contributing to a noticeable rise in family and partnership disputes.
While agricultural and business property reliefs remain a cornerstone of succession planning, increased scrutiny, changes in qualifying criteria and the quantum of relief available have reminded families that relying on “things staying the same” is rarely a robust strategy.
This has prompted a renewed focus on questions such as: Who will ultimately own the business? How fairly should value be divided? And what happens if a successor does not wish – or is unable – to continue the enterprise?
At the same time, lower profitability in sectors such as arable, some livestock and some diversified businesses means that cashflow is often stretched. Businesses that previously supported multiple households are now under strain, exposing tensions between working and non-working family members, or between capital owners and those responsible for day-to-day management. Where expectations have not been clearly agreed, these pressures can escalate quickly into disputes.
What we are seeing more frequently are disagreements around profit shares, drawings, decision‑making authority, capital expenditure and exit arrangements. In partnerships and family companies alike, historic agreements often prove out of date, poorly documented or silent on the very issues now causing friction. When combined with emotional ties and differing personal objectives, this can become a potent mix.
Based on our work with farming partnerships, estates and family businesses, we believe the following five steps can significantly reduce the risk of disagreements escalating into formal disputes:
Difficult conversations may be uncomfortable, but they are increasingly unavoidable. Addressed early and constructively, they can strengthen both the business and the family relationships that underpin it – rather than allowing issues to escalate into disputes that are far harder, and more costly, to resolve.