Assessing lie of the land post-Budget

Greg Macvean Photography

It’s not very often you see tractors in the centre of London, but earlier this month farmers flocked to the streets around Parliament to protest about changes to how they are treated when it comes to Inheritance Tax (IHT).

You can read more about the measures on these pages, but, to sum it up, from April 2026 business and agricultural reliefs will be restricted. Estates will be eligible for 100 per cent IHT relief on the first £1 million of combined business and agricultural assets, and50 per cent relief on amounts over £1m. After the usual nil-rate-band allowances have been applied, IHT will be due at an effective rate of20 per cent on combined agricultural and business assets of more than £1m.

There is debate over how many farmers will be impacted by this change, but steps can be taken. As Tom Ham of Calton points out in his comment piece, financial planners, working closely with tax accountants and solicitors, can provide the tools to allocate assets in as tax efficient a manner as possible. He says: “Together we create the structures that put farmers and their farms on a surer footing – however political winds blow.”

On Wednesday, we’ll hear what the Scottish Government has to say about its tax and spending plans, but there is unlikely to be much to cheer about with the Fraser of Allander Institute already saying SNP finance secretary Shona Robison will have “little room for manoeuvre”.

Also in this Scotsman Money, Sean Lowson of Waverton Wealth shares his thoughts on the Budget and why it’s vital to have a well-structured estate plan. And, in our Q&A, Andrew Sutherland of Acumen Financial Planning outlines the benefits of working with a professional adviser over taking a DIY approach.

On a personal issue, I sadly lost my family cat just a few weeks ago. Izzy – a rescue cat we adopted in 2008 when she was almost two years of age – had to be put to sleep after suffering a series of seizures. It has been a very sad time for us, but our vet was amazing and understanding about what an upsetting experience it was for my husband and I and our young son.

In terms of finances, we were sensible enough to have taken out pet insurance but, when I look back over Izzy’s life, I’ve realised it certainly doesn’t come cheap. We’ve paid thousands in insurance yet still had to find a few hundred pounds for vet bills towards the end of Izzy’s life because of the excess on the policy. So, while I would urge people to take out pet insurance, it’s important to shop around.

If you have a personal finance question you would like answered please email [email protected] and you can sign up for our newsletter at www.scotsman.com/newsletter