Sectors Archives

Spring Budget 2023

Posted on 16 March 202329 March 2025 by Sarah O'Sullivan

Chancellor of the Exchequer, Jeremy Hunt, delivered his first spring budget on the 15th of March declaring it was “A budget for growth.” The fiscal update included a range of new measures, some of which had been widely trailed prior to budget day, in order to achieve growth “by removing obstacles that stop businesses investing; by tackling labour shortages that stop them recruiting; by breaking down barriers that stop people working; and by harnessing British ingenuity to make us a science and technology superpower.”

OBR forecasts

The Chancellor began his statement by unveiling the latest economic projections produced by the office for budget responsibility (OBR) which he said showed the UK would meet the Prime Minister’s priorities to “halve inflation, reduce debt and get the economy growing.” In relation to the first priority, Mr Hunt said the latest OBR figures suggest inflation will fall from an average rate of 10.7% in the final quarter of last year to 2.9% by the end of 2023. This sharp decline is partly due to some of the chancellor’s budget measures, including the three-month extension to the household energy price guarantee (EPG), which the government had confirmed earlier in the day.

Mr Hunt also said the OBR forecast suggests the UK economy will now avoid a technical recession this year (defined as two consecutive quarters of economic decline) and then expand in each of the remaining years of the five-year forecast period. According to the updated figures, the economy is expected to shrink by 0.2% this year, a significant upgrade from last autumn’s forecast of a 1.4% contraction, with growth then predicted to hit 1.8% in 2024 and 2.5% in 2025, before easing back towards its medium-term potential growth rate of 1.75% by 2028.

The Chancellor’s growth strategy focuses on the four pillars ‘everywhere, enterprise, employment and education,’ as previously outlined in his Bloomberg speech in January.

Everywhere

Mr Hunt spoke about the government’s plans for ‘levelling up,’ including the launch of 12 new investment zones. Across these “12 potential Canary Wharfs,” £80m of support per zone will be available for skills, infrastructure and tax reliefs. Mr Hunt also mentioned specific projects selected for local investment, including:

£200m for local regeneration projects and £400m for new levelling up partnerships across England
£8.8bn over the next five-year funding period for the city region sustainable transport settlements
Up to £8.6m for the Edinburgh festivals, as well as £1.5m for the repair of Cloddach bridge, near Elgin, and £20m for the restoration of the Holyhead breakwater in Anglesey
Up to £3m to extend the tackling paramilitarism programme in Northern Ireland.

Enterprise

To provide the right conditions for businesses to succeed: A ‘full expensing’ policy will apply from the 1st of April 2023 until the 31st of March 2026 to allow investment in IT, plant or machinery to be deducted in full and immediately from taxable profits
an increased rate of relief for loss-making research and development (R&D)-intensive small and medium size enterprises (SMEs) – eligible companies will receive a £27 credit from HMRC for every £100 of R&D investment
an extension of higher reliefs for theatres, orchestras, museums and galleries for two further years
the medicines and healthcare products regulatory agency (MHRA) will receive £10m extra funding over two years
all of the recommendations from Sir Patrick Vallance’s review of pro-innovation regulation of digital technologies are accepted
£900m of funding for AI research resources and an exascale computer as well as a commitment to £2.5bn ten-year quantum research and innovation programme through the government’s new quantum strategy
innovation accelerators programme – £100m funding for 26 transformative R&D projects
AI challenge prize – £1 million prize every year for the next ten years to researchers that drive progress in critical areas of AI.

Employment

The Chancellor turned next to employment, with a suite of new measures to “remove the barriers that stop people who want to from working.” To achieve this, he announced:

Mature workers

The expansion of the DWP’s ‘midlife’ MOT scheme, aiming to reach up to 40,000 individuals per year (up from the current 8,000)
new ‘returnerships’ scheme to make existing skills programmes more accessible to older workers and help them upskill and retrain
a pension tax relief overhaul; see details in the personal taxation and pensions section.
people with long-term illnesses and disabilities
a white paper on disability benefits reform
the abolition of the work capability assessment for disability benefits claimants
a new voluntary employment scheme for people with disabilities
£406m to increase support for working adults with mental health, musculoskeletal and cardiovascular problems.

Welfare recipients

An increase to the Administrative Earnings Threshold
a stronger sanctions regime for universal credit claimants.

Care leavers

A 50% increase in funding for the staying close programme
an increase in the qualifying care relief threshold to £18,140 per year plus £375 to £450 per person cared for per week for 2023/24 and these thresholds will then be index-linked, representing a tax cut worth approximately £450 per year on average.

Education

Mr Hunt then turned to Education, stating that he wants to reform the childcare system, currently “one of the most expensive systems in the world.”

His new proposal will offer 30 free hours of childcare each week to pre-school-age children aged nine months or above in English households where both parents work. It will be phased in on the following timeline:

April 2024 – eligible two-year-olds will receive 15 hours of free childcare per week
September 2024 – qualifying children aged nine months to two years will receive 15 hours
September 2025 – eligible children aged nine months to three years will receive 30 hours.

Also, schools and local authorities will be funded to increase the availability of wraparound care, to enable parents of school-age children to drop them off between 8 am and 6 pm.

To tackle the problem of unaffordable upfront costs, Mr Hunt also announced support for the 700,000 families on universal credit. Another major change involves each staff member in England being able to look after five two-year-olds instead of four, as is already the case in Scotland.

Personal Taxation and Pensions

To encourage over-50s to extend their working lives, the government is increasing tax relief limits on pension contributions and pots – the annual allowance will be raised from £40,000 to £60,000 from April 2023; the lifetime allowance (LTA) charge will be removed from April 2023, and the LTA will be abolished from April 2024. The maximum amount that can be accessed tax free (pension commencement lump sum) will be frozen at its current level of £268,275 (25% of current LTA). From April, the minimum tapered annual allowance (TAA) and the money purchase annual allowance (MPAA) will increase from £4,000 to £10,000 and the adjusted income threshold for the TAA will also rise, from £240,000 to £260,000.

As a reminder, the following changes were previously announced in the Autumn statement 2022:

The income tax additional rate threshold (ART) at which 45p becomes payable is lowered from £150,000 to £125,140 from April 2023. The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales and Northern Ireland
the dividend allowance reduces from £2,000 to £1,000 from April 2023 and to £500 from April 2024
the annual capital gains tax exemption reduces from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024
The stamp duty land tax nil-rate threshold for England and Northern Ireland is £250,000 for all purchasers and £425,000 for first-time buyers, remaining in place until 31 March 2025.

In addition:

The income tax personal allowance and higher rate threshold remain at £12,570 and £50,270 respectively until April 2028 (rates and thresholds may differ for taxpayers in parts of the UK where income tax is devolved)
the basic state pension will increase in April 2023 from £141.85 per week to £156.20 per week, while the full new state pension will rise from £185.15 to £203.85 per week. The standard minimum income guarantee in pension credit will also increase in line with inflation from April 2023 (rather than in line with average earnings growth)
inheritance tax (IHT) nil-rate bands remain at £325,000 nil-rate band, £175,000 residence nil-rate band, with taper starting at £2m – fixed at these levels until April 2028
national insurance contributions (NICs) upper earnings limit (UEL) and upper profits limit (UPL) are frozen until April 2028
The ISA (individual savings account) allowance remains at £20,000 and the JISA (junior individual savings account) allowance and child trust fund annual subscription limits remain at £9,000.

Other key points

Potholes fund – an extra £200m for local road maintenance in England in 2023/24
alcohol duty – rates frozen until August 2023 then uprated by RPI, draught relief increased to 9.2% for beer and cider and 23% for wine from 1 August 2023
fuel duty rates – maintaining the rates of fuel duty at the current levels for an additional 12 months
defence spending – an extra £4.95bn for defence over 2023/24 and 2024/25
support for veterans – an additional £33m over the next three years
swimming pool support fund – over £60m for public swimming pools across England
support for charities and community organisations – £100m (England)
plastic packaging tax rate – uprated in line with CPI from 1 April 2023
launching ‘great British nuclear’ – supporting new nuclear builds, £20bn available for carbon capture, utilisation and storage (CCUS), and extending the climate change agreement scheme for a further two years
devolved administrations – receiving an additional £630m through the Barnett formula over 2023/24 and 2024/25 (Scottish government £320m, Welsh government £180m and Northern Ireland executive £130m).

Closing comments

Jeremy Hunt signed off his announcement saying, “today we build for the future with inflation down, debt falling and growth up. The declinists are wrong and the optimists are right. We stick to the plan because the plan is working.”

If you have any queries or need more information on any of the areas covered, or any other financial matter, please do not hesitate to contact us.

Information within this document is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on individual circumstances.

All details are believed to be correct at the time of writing (15 March 2023)

Polly Kerr talks to ITV Anglia News

Posted on 2 March 202330 March 2025 by Sarah O'Sullivan

ITV News has released a report on the provision of Special Educational Needs and Disabilities (SEND) in East Anglia.

The survey of 500 parents of children with special educational needs (SEN) and disabilities showed there is a significant level of dissatisfaction among families. It also highlighted that there were many service and provision shortcomings. Additionally, the findings reveal a system that puts hundreds of individuals in debt.
The survey revealed that 32% of parents claimed their child was not receiving the support they were entitled to, as per their Education, Health and Care Plan (EHCP).

Polly Kerr spoke to ITV Anglia News, sharing her thoughts on the current state of SEND provision:

“I don’t think it would [change much] because I don’t think there are the school places available or the resources available to be able to affect change now.”
“It’s going to be like moving the Titanic.”

She said thousands of children were being failed.

You can read the full report here:
Thousands of parents and children being failed by special educational needs system, research shows | ITV News Anglia

NFU confirms appointment of its legal panel firms in East Anglia

Posted on 10 October 202230 March 2025 by Sarah O'Sullivan

The NFU has confirmed the outcome of its 2022 review of legal panel firms, with two firms reappointed to the panel in East Anglia.

Tees and HCR Hewitsons have been reappointed after a review that assessed the firms’ legal services, engagement with the organisation and its members, as well as feedback from NFU members and staff.

NFU director of policy Andrew Clark said: “The legal panel is an important feature of the NFU’s legal services offering to our members and I am delighted to confirm the reappointments.

“The NFU’s panel firms are committed to supporting NFU members and have clearly strengthened their agricultural and rural teams over the past few years. Their broad expertise is highly valued by our in-house legal team and NFU members.”

Tees has been reappointed to help members farming in Essex, Hertfordshire and Suffolk. Partner Caroline Metcalf said: “We are pleased to have been selected to be on the NFU legal panel again. Being selected really demonstrates Tees’ depth of legal knowledge and expertise in agricultural and rural issues.”

The firms appointed to the legal panel offer a comprehensive legal service encompassing all areas of law relevant to farming and growing, including succession planning, diversification, renewable energy, dispute resolution, planning, probate, family and conveyancing. In the latest financial year, the panel offered a total discount of over £500,000 to NFU members.

NFU legal board chair Nick Hamer said: “The aftermath of Brexit and the Covid-19 pandemic created several challenges for farming and growing businesses”

“We are entering a period of transition for the industry and this undoubtedly puts the legal panel in high demand, providing expert advice to NFU members on a wide range of legal matters.”

Can schools ban sausage rolls? Understanding healthy eating policies in schools

Posted on 5 August 202221 March 2025 by Sarah O'Sullivan

A primary school in Bradford found itself under fire from some parents who have called the school’s new healthy eating policy “ridiculous.”

The school banned items such as sausage rolls, pork pies and squash from packed lunch boxes in a bid to encourage healthy living at an early age. The policy is a whole school policy impacting on all pupils who attend. But it does raise the question, can schools really dictate what children eat during the day?

Tees’ Polly Kerr is an education lawyer advising parents on education matters such as: exclusions, appeals, special education needs and education health and care plans. In this article, Polly explains more about lunchbox rules.

In January 2015, the government introduced a new set of rules and regulations, which governed the type of foods that schools could provide to pupils during the school day and it became the responsibility of the school to ensure that they met (and continue to meet) the School Food Standards practical guide updated May 22. These include the following:

1 or more portions of vegetables or salad as an accompaniment every day
at least 3 different fruits, and 3 different vegetables each week
an emphasis on wholegrain foods in place of refined carbohydrates
an emphasis on making water the drink of choice:
limiting fruit juice portions to 150mls
restricting the amount of added sugars or honey in other drinks to 5%
no more than 2 portions a week of food that has been deep fried, batter coated, or breadcrumb coated
no more than 2 portions of food which include pastry each week

Interestingly the School Food Standards regulations do not apply to academies established between September 2010 and June 2014 but it is recommended that they be used as a guide and adopted voluntarily by these schools.

There are some exceptions to these rules, such as parties or celebrations, fund-raising events, rewards for achievement or good behaviour, food used for teaching food preparation or cookery skills and on an occasional basis by parents or pupils. So the odd chocolate bar for celebrating a classmate’s birthday is not prohibited by the regulations.

Schools in England must also provide free drinking water to all pupils at all times whilst they are in school and are prohibited from selling drinks with added sugar, chocolate or sweets in vending machines.

Whilst the government have tightened the rules around food supplied by a school in a bid to make children healthier, packed lunches brought in from home are not caught by the regulations.

However, schools are allowed to set their own policies regarding the types of food consumed on their premises during the school day and, provided that the policies implemented by the schools do not breach the school’s obligations under the Equality Act 2010 or any other relevant legislation, schools are free to determine what their pupils bring to school to eat during the day and, if their policies allow, to confiscate or challenge the inclusion of prohibited items within packed lunches.

This article was originally published in November 2017 in Salad Days (http://www.saladdaysmag.uk/).

To check if your child can get free school meals in England and apply to your local authority website – visit Gov.uk

Ideas for your child’s packed lunch:

NHS guidance – Healthier lunchbox recipes
BBC good food – School packed lunch inspiration

Tees Law appoints new Senior Partner

Posted on 7 October 202130 March 2025 by Sarah O'Sullivan

Tees Law, a leading regional law firm with offices across Cambridgeshire, Essex, and Hertfordshire, is thrilled to announce the appointment of Catherine Mowat as its new Senior Partner. Catherine becomes the firm’s eighth Senior Partner in its 108-year history and the first woman to hold the position. She succeeds David Redfern, who will continue as a Consultant and Non-Executive Chairman of Trust Tees Ltd and Tees Financial Ltd.

A career of dedication and growth

A dedicated member of the Tees family since 1998, Catherine began her career as a trainee in the Bishop’s Stortford office. During her training contract, she had the opportunity to work alongside former Senior Partners Rodney Stock in Commercial Property and Richard Tee in Private Client. It was within the Private Client department that Catherine found her passion, which has shaped her career ever since.

After qualifying as a solicitor in 2000, Catherine became a Partner in 2007. Her career progressed swiftly, and from 2005 to 2008, she balanced a demanding caseload while earning an MBA in Legal Practice. In 2009, she transitioned to the Cambridge office, becoming Head of Office the following year, leading the team for four years.

Expertise in private client law

With over 20 years of experience in Private Client law, Catherine specializes in complex estate administration and succession planning. Her expertise spans wills, powers of attorney, and succession planning for rural clients and high-net-worth individuals. She has also developed significant experience in high-value professional deputyships, often acting as a professional deputy, executor, trustee, and attorney. Under her leadership, the Private Client team in Cambridge has grown substantially, achieving a seven-figure turnover.

Leadership and contributions

In addition to her leadership in Cambridge, Catherine has served as a Director on the firm’s main board, Trust Tees Plc, since 2018. She also contributes to the management of the Private Client department across Tees’ six offices and is a key member of the Cambridge office leadership team.

Life beyond the office

Outside of work, Catherine lives near Saffron Walden. She has a passion for music, singing in local choirs, and serving as a trustee for several charities.

A vision for the future

Reflecting on her appointment, Catherine shared, “It is an enormous privilege and an exciting challenge to take on this responsibility. Tees has grown and evolved over the years, but our core values of empathy, clear communication, and collaboration remain unchanged. As Senior Partner, I aim to uphold these values and ensure they continue to guide everything we do.”

She added, “In a rapidly changing world, agility and adaptability are key. The pandemic underscored our ability to embrace new technologies and hybrid working practices. Moving forward, we must remain open to opportunities and use challenges as a catalyst for growth.”

A fond farewell and exciting future

Ashton Hunt, Group Managing Director at Tees, expressed gratitude for David Redfern’s leadership. “David’s unwavering dedication over his 38-year career has been instrumental in making Tees the successful firm it is today. We are deeply grateful for his contributions and are pleased that he will remain involved as a Consultant and Non-Executive Chairman.”

Ashton continued, “Catherine’s extensive experience and dedication make her an excellent choice for Senior Partner. I have no doubt she will lead Tees to even greater success. We are excited for the future under her leadership.”

Tees Law looks forward to the next chapter, guided by Catherine’s commitment to excellence and innovation.

Advice to young farmers on taking over the family farm

Posted on 12 April 202120 March 2025 by Sophie Soraf

If you’re a young farmer who is in line to inherit your family’s business, taking the farm successfully forward into the next generation can feel overwhelming.

In this guide, we provide you with an overview of the many ways you can prepare yourself to run the family business, embrace new methods of working and protect the farm both legally and financially.

Open up conversations about succession

While talking about money and inheritance can be uncomfortable, it’s important to open up these conversations early on so that everybody’s expectations and positions are clear. Succession planning is important for any family business, but broaching the idea within farming families can be particularly difficult, with the current business owner often reluctant to relinquish control to a successor.

According to a study, less than a fifth of farmers plan to ever fully retire, while only half of those with children have identified a successor. Indeed the UK Government recognises this as a problem, to the extent that it has set up a new scheme to pay older farmers to retire, enabling the younger generation to enter, bringing with them new farming methods and breathing new life into the business.

Even if the current owner of your family’s business has no plans to retire, it’s still important to plan for the unexpected and to ensure that the legal and financial framework has been put in place to enable you to take over the business in the event of their death.

If your parents are unwilling to enter into these types of conversations with you, our rural legal specialists can help you facilitate positive discussions by explaining the benefits of succession planning and assisting with essential aspects of estate planning such as drafting Wills, providing Inheritance Tax (IHT) advice, introducing the possibility of making lifetime gifts and placing life insurance benefits in trust.

Key succession planning questions

If you’re unsure of where to start, here are some good questions you can use to open up productive conversations around succession and the future of the family business.

What are your parents’ future plans? Do they plan to retire? If so, can you work with them and take on more responsibility so they are able to slow down in their later years? If not, is there another way for the two generations to satisfactorily work together in the long term?
Who will live where? Does the farm have a number of properties which can accommodate the family? If so, try to have an open discussion with all family members about preferences for the future.
What training and skills development do you need to undertake in order to prepare for succession? Your parents may be nervous to hand over the farm if they do not believe you yet possess the skills to take the farm forward successfully.
It’s likely your parents will not want to split up the farm, so if you are in line to inherit, what provision will need to be made for your siblings, if you have any?
How will your family’s land and business assets be passed down with the minimum Inheritance Tax liability?
What role do you, your parents and your siblings want to play, now and in the future? Do your siblings want to be involved in the farm or are they happy for you to take it over? It’s important to nail the details down now to avoid conflict later down the line.

Draw up a partnership agreement

If the farm owner is not ready to retire, but you are still looking to take a more active role in the business in order to develop your knowledge and skills, you may wish to consider a Partnership Agreement.

Having a partnership agreement in place allows clarity regarding the ownership of business assets and enables families to clearly define the roles each partner will play in the day-to-day management of the farming business. Holding assets within the partnership can sometimes also be a useful tax planning tool.

Our expertise is in helping farming families draft comprehensive partnership agreements, and to advise on any issues that may arise in the duration of the partnership (for example, helping to handle disputes, or managing change within the partnership, e.g. if one of the partners leaves the partnership or dies).

Consider diversifying

Whether they want to or not, many farming businesses are having to diversify and find new and sustainable sources of income to ensure the farm’s survival in the modern era. According to Defra, 66% of farms across the UK have already diversified in some form to provide farming families with the additional income they need and support the rural economy.

This may take the form of using unused outbuildings to set up farm shops or professional services spaces, hosting tourism accommodation, or setting aside land for recreational uses, such as horse riding or golf courses.

Funding a new venture is often expensive, which can prove a barrier to successful diversification. In addition to commercial loans and private finance, you may be able to access funding from initiatives such as the Rural Development Programme for England, which provides money for diversifications that will have a positive impact on the environment.

At Tees, we regularly advise farming families on a wide range of diversification projects, ensuring they meet any new legal and regulatory requirements to which they may become subject in the course of their new venture – for example, planning permission, or the acquisition of special licenses or certificates.

Get familiar with new post-Brexit funding

The EU system of grants and subsidies to British farmers is being phased out from this year and replaced with a new series of Environmental Land Management schemes that reward farming businesses for the provision of ‘public goods’, i.e. implementing more sustainable farming methods or working to restore habitats and the environment.

Understanding the types of initiatives rewarded by the new system will help you guide the business in the right direction and enable you and your family to more effectively plan for the future.

They include (but are by no means limited to):

Natural flood management measures
Restoring habitats and environments
Forest and woodland creation
Opening up public access to the countryside
Improving soil health
Improving air and water quality.

More information about the post-Brexit Environmental Land Management schemes can be found here. The gov.uk website also gives an overview of other grants and payments currently available to agricultural businesses.

Take specialist advice

For many young farmers, the thought of taking over the family farm is exciting, but overwhelming. But you don’t have to do it alone. Our agriculture and estates specialists offer legal and financial services across a broad spectrum of specialisms, including Wills, Trusts, Tax & Probate, Corporate, Commercial Property and Wealth Management.

We have been helping farming families successfully transfer their business from generation to generation for over a century. For advice on planning for your future, don’t hesitate to get in touch.

One farming family, over 30 years of trusted legal and financial advice

Posted on 12 April 202129 March 2025 by Sarah O'Sullivan

For over three decades, Tees has provided expert legal services to multiple generations of the Miller* family, a prominent agricultural family with extensive farming, land and property interests located across several English counties.

Our senior partner and specialist in rural succession and estate planning, Catherine Mowat, has worked closely with the Millers for many years, helping them capitalise on opportunities for efficient estate planning and take advantage of valuable Inheritance Tax reliefs.

Alongside Catherine’s team, our Commercial Property, Residential Property, Commercial and Wealth Management teams have worked together collaboratively in order to help the Miller family effectively manage their business and property interests.

Passing assets on to the next generation

Catherine has worked extensively with the Millers over a number of years to put in place comprehensive arrangements that will enable more senior family members to pass on their assets effectively to future generations, whilst minimising the Inheritance Tax (IHT) payable on their estate.

The family were advised to make substantial lifetime gifts to their children and grandchildren, enabling assets to be passed on to younger generations in a controlled way.

How does Inheritance Tax (IHT) work?

IHT is a tax on the capital value of assets (including money, property and possessions) either when somebody has died or on some gifts made during lifetime. On death, it is generally payable at a rate of 40% on all assets over the value of £325,000, although there are exemptions and reliefs that can be used to lessen the amount due. Another way of reducing the IHT payable on your estate is to make lifetime gifts. If you make gifts more than seven years before you die, there will usually be no IHT due on these gifts on your death. If tax does arise, only gifts given less than three years before you die attract the full 40% IHT rate, making lifetime gifts an excellent opportunity for passing on assets to minimise tax.

These lifetime gifts also caused the estate value belonging to the children to rise, increasing their IHT liability. Here, our Wealth team stepped in to help set up suitable life insurance arrangements, written in trust to minimise the impact of a significant tax bill.

Why should I write my life insurance policy in trust?

Writing your life insurance in trust is a way to avoid paying IHT on the eventual payout. When you place an asset into a trust, you essentially give up ownership of that asset to the trust and appoint trustees to oversee it (this can be a solicitor, like Catherine, or somebody else). As the assets (in this case, the life insurance policy) don’t officially belong to you, they aren’t classed as being part of your estate and are therefore not subject to IHT.

Catherine has also worked with the Millers to draft essential estate planning documents such as Wills and Powers of Attorney, and acts as a trustee for the various trusts within which the family’s business and property assets are held. Her many years spent advising this family have enabled her to build a strong relationship with the Millers, bound by mutual trust and respect.

Taking advantage of Inheritance Tax (IHT) relief

Over the years, our Wills, Trusts and Probate team has worked closely with the Millers to ensure their entitlement to valuable IHT reliefs. For example, Catherine’s advice has enabled the family to take full advantage of Agricultural Property Relief (APR) on their eligible assets.

What is Agricultural Property Relief (APR)?

APR allows farming families to pass on agricultural property at a reduced or 0% rate of IHT, either during a person’s lifetime or in their Will. To apply for APR, the land or property must have been owned for at least seven years, or occupied for two years and must be used for growing crops or rearing animals, or take the form of farm buildings, cottages or houses. It does not apply to farm equipment or machinery, derelict buildings, harvested crops or livestock. APR can be due at 100% or 50%, depending on the circumstances.

Catherine also regularly reviews the balance of the Millers’ business activities to ensure that no entitlement to Business Relief (BR) is lost, by using the ‘Balfour’ test.

What is Business Relief (BR)?

BR allows business owners to pass on certain business assets at a reduced or 0% rate of IHT, either while they are still alive or via their Will. The owner must have owned the assets for at least two years before they died for them to be eligible. BR is due at 100% for:

A business, or interest in one
Shares in an unlisted company

It is due at 50% for:

Shares controlling over 50% of the voting rights in a listed company
Land, buildings or machinery owned by the deceased and used in a business in which they were a partner or controlled
Land, buildings or machinery used in the business and held in a trust the business has the right to benefit from

To be eligible for BR, a business must also be classed as a predominantly trading business. However, many farms are becoming increasingly diversified, with activities such as cottage rentals and holiday lets shifting the balance from trading to investment.

Catherine used the Balfour test to assess the Millers’ farming business and used the results to advise the family on achieving the best balance between trading versus investment activities within the farming partnership for BR purposes.

Strategic land and property solutions

Our Commercial Property team regularly steps in to assist the Miller family in matters relating to the lease or sale of land and properties, which include a range of sites with commercially let units, and other strategic deals such as granting options. Rural specialists within our Commercial Property team will negotiate and facilitate these various land transactions.

An example of the type of planning advice we offer might be in relation to land owned by a family trust on which planning permission has been obtained for development. In this situation our Corporate team would step in to advise on the incorporation of a ‘freezer’ company.

The team would also prepare bespoke articles of association, ‘freezing’ the value of certain interests in the company in order to cap ownership. This ensures that the growth and value of the land will be passed on to the next generation tax-efficiently and limit their IHT liability.

What is a ‘freezer’ company?

Also known as a family investment company (FIC), a ‘freezer’ company is essentially a private limited company whose shareholders are all family members. Commercial solicitors can help the family prepare bespoke articles of association that set out the rights and interests each party holds within the company. For example, the parents can set themselves up as voting shareholders – thus maintaining control over the company – but ‘freeze’ the value of their interests in the company to cap their ownership.

Meanwhile, the children can be non-voting shareholders but own the majority of the shares, allowing the growth and value to pass on tax-efficiently to the next generation. This makes ‘freezer’ companies an ideal vehicle for intergenerational wealth management, allowing assets to be passed on during your lifetime whilst still retaining control of them. If you live for more than seven years after setting up the company, no IHT will be due (according to the rules of lifetime gifting).

A full- service firm rural families can depend on

For over a century, Tees has been a trusted partner to farming families like the Millers, helping them pass the family business from generation to generation. In this time, our agricultural specialists have developed a unique understanding of the challenges facing the rural community.

From tailored business advice to passing your land and assets tax-efficiently to the next generation, our specialist agricultural lawyers can help you navigate the complex relationship between business, land and family interests.

*Please note that the family’s name has been changed for anonymity.

Farming divorce: Protecting your family farm

Posted on 3 June 202023 March 2025 by Sarah O'Sullivan

A farm is usually a family business, but it’s more than simply an income. It’s an all-consuming occupation and a way of life. Divorce has become part of everyday life, and farming families are as susceptible as any other to a marriage failing. However, farming divorces are more complex, so it’s vital that you seek expert legal advice.

Clare Pilsworth, Partner in the Family Law team at Tees, outlines the challenges faced in a farming family divorce and identifies steps that can be taken to ensure that the farming business is protected from the outset.

If the worst were to happen and your marriage hits troubled times, we will provide you with the expert legal guidance and support you need.

What factors are considered in a farming divorce?

The primary aim in a divorce separation is to establish what the needs of each party are and how these needs may be met.

The courts have very wide discretion to reallocate assets within a marriage to ensure that both parties’ needs are met for the future. This could mean being forced to sell off land or property in order to raise cash, which will raise some important issues for your farming business.

The first step is to define the assets and decide how to share assets built up during the marriage. The Courts will then seek to ensure each party receives a ‘fair share’. A fair share, however, does not necessarily mean equal, and farming cases merit special consideration, including:

Inherited assets which are not subject to the sharing principle in the same way
A farm owned by the wider family, for example, with siblings, parents or both, will require careful thought as Courts are reluctant to damage the livelihoods of other third parties.
Provided there are sufficient liquid assets, the Courts can disregard equality in favour of protecting any inherited element

Whilst for non-farming divorces, an equal division of assets and wealth accumulated during marriage could be considered a fair divorce outcome, this may not always be achievable for farming families because of the need to preserve assets that were owned long before the marriage.

‘Fairness’, however, still requires financial needs to be met.

What about family members living on the farm?

You may have passed certain farming properties to your adult children or have allowed them to live in them to ensure that the needs of the farm can be met.

Where an adult child has received financial support or housing from a parent during the marriage which is then subject to divorce the Court can make an order against the child effectively forcing them to prevail upon parents or the extended family, to provide support in relation to financial settlement.

It is therefore important to be aware of the potential implication of deciding to financially assist children during their marriages. This is particularly relevant where a family’s wealth has been built through the farming generations, and the family want to prevent the farming business being broken up during divorce proceedings.

Do I need to go to court?

Contesting financial matters in Court within a divorce can be very costly and is not the only option open to you. The Courts are, therefore, placing more and more emphasis on non-court dispute resolution as a means of solving disputes because of the significant delays and expenses that come with court proceedings.

Non-court dispute resolution options, such as mediation, collaboration, and arbitration, are alternatives to court proceedings that seek to resolve matters as efficiently, cost-effectively, and amicably as possible.

How can I protect my farm?

Careful planning in advance is extremely important. By doing so, you can structure your arrangements taking full account of the specifics of your farming business and individual family circumstances.

There are several ways you can seek to protect your farming business along with future income streams:

Partnership Agreements

Partnerships are the most common business structure within the farming industry – they are relatively simple and a flexible way to run a farming business. By drawing up a partnership agreement, you will be able to ensure that it is made clear in writing exactly which assets belong to the partnership and which are owned by each partner as individuals.

Family Trusts

One way to protect the family farm is through a family or discretionary trust. This trust not only protects family assets but can also divide farm income to minimise tax.

A trust “owns” your family assets, such as the farm, investments, home, shares, or business, while you, your family members, or others might be beneficiaries under the trust.

Trusts can play a key role in protecting family wealth on divorce and can provide a means to assist adult children without risking farm assets. However, trusts should always be considered as part of a long-term strategy to protect family wealth, as a trust set up when a marriage is on the verge of breakdown is unlikely to withstand the scrutiny of the courts.

What about a prenuptial agreement?

Prenuptial agreements are an effective way of legally protecting your farming business, together with property and money acquired before a marriage. Entering into such an agreement before marriage allows you and your future spouse to plan how you will divide current and future assets should you divorce in the future.

However, there is something to be said for ensuring that the spouse marrying into the farming family does not feel excluded through entering a prenuptial agreement and, through the marriage, feels invested in the future success of the farm and business.

If a prenuptial agreement might be considered, it should be done so in light of the joint commitment of the marriage. It is that commitment which will make the farm succeed as well.

It is important to take expert legal advice from a family lawyer who specialises in dealing with farming assets on divorce to ensure that the terms of the prenuptial agreement are sufficiently robust to be upheld by a court.

Certain criteria must be fulfilled for the agreement to be upheld and it is important for both parties to receive independent legal advice.

Expert legal advice for over a century

Tees’ heritage and culture has been rooted in the local farming community in and around East Anglia for well over a century, and its legal experts, many of whom are from farming families themselves, have decades of experience in dealing with all aspects of legal farming matters.

Three new female partners tip the balance at Tees

Posted on 1 April 202030 March 2025 by Sarah O'Sullivan

Three new female partners have swelled the senior ranks at Tees Law, a Top 200 law firm with offices in Bishop’s Stortford, Brentwood, Cambridge, Chelmsford, Royston, and Saffron Walden. Letty Glaister, Eleanor Burroughs, and Kay Piper’s promotions to the partnership mean that female lawyers now comprise the majority of the firm’s partners. In a profession where women typically occupy less than a third of partnership roles, Tees is leading the way in supporting female lawyers to access senior positions and progress in their careers.

Commitment to diversity and equality

Tees’ head of HR, Amy O’Brien, commented: “Tees encourages and values diversity and is committed to equality for its entire staff. Fifty-three percent of partners at Tees are women, and having such a balanced split works really well for us. Each partner, be they male or female, brings different strengths and qualities to the team and contributes to driving the company forward. These principles of equality of opportunity and non-discrimination also extend to the manner in which our employees interact with our clients, our business partners, and our visitors.”

Kay Piper’s vision for commercial property

Kay Piper is head of Tees’ commercial property department in the Bishop’s Stortford office. Speaking of her appointment, Kay says: “I am looking forward to increasing the team’s presence and connections within the community, reaching out to build local awareness of Tees’ expertise in commercial property matters. I am also very keen to further develop a collaborative team within Tees, ensuring that we work together to deliver a joined-up service for our clients. Whilst the entire Tees team is currently working from home, we’re still working hard to keep connected with our clients and to each other. We’re actually finding that we’re communicating more than ever.”

Letty Glaister’s rural community focus

Letty Glaister, who heads up the Royston office, hopes to further strengthen her relationships within the rural community and cement Tees as the law firm of choice for farming clients throughout Hertfordshire and Essex. “It’s really important that our clients trust us implicitly, and that can only be achieved by making a real effort to strengthen our links with the surrounding community, especially during these difficult times when many rural families are feeling concerned and isolated due to social distancing measures,” she says. “Particularly in the rural world, maintaining close relationships is vital as we are dealing with farms that have been in families for generations, meaning that emotions can run high for all concerned.”

Eleanor Burroughs’ commitment to Saffron Walden

Eleanor Burroughs, who has been working at Tees’ Saffron Walden office for 11 years, heads up its residential property department. In addition to her partnership promotion, she has also been promoted to head of the Saffron Walden office, effective from April. Going forward as a partner, Eleanor says she is “looking forward to maintaining the close links we have worked so hard to build up with the local community, and to building the Tees brand.”

A message from the group managing director

Ashton Hunt, group managing director at Tees, is delighted by the three new partners’ success: “At Tees, we have always been assiduous in ensuring our female solicitors are supported in progression to senior roles. Letty, Eleanor, and Kay have all consistently demonstrated their excellence in their fields and commitment to our firm during their time here. Whilst leading their teams remotely during these challenging times, they continue to deliver a consistently excellent service to their clients. Their promotion to partner is thoroughly well deserved.”

Home to school transport – Appeals

Posted on 19 April 201827 March 2025 by Sarah O'Sullivan

Your child’s eligibility for home to school transport can have a big impact on which school you choose. Find out about the eligibility criteria for home to school transport.

Criteria for home to school transport

Eligibility for home to school transport is, in the first instance, calculated by walking distance from the school. To be eligible for home to school transport, your child must be attending their nearest suitable school and live at least:

2 miles from the school (for children under the age of 8)
3 miles from the school (for children over the age of 8, up to age 16).

The distance is measured by the nearest available safe route on foot.

When a child lives within walking distance of their school, the Local Authority is not ordinarily expected to provide transport. Although parents may consider the distance is simply too far for their child to walk, the law could differ. Many parents face the difficult prospect of arranging transport themselves.

Local Authorities are obliged to provide transport for children who attend a school outside of walking distance if:

The child attends that school out of necessity (rather than the parent’s choice)
No alternative travel arrangements are suitable.

Is my child eligible for home to school transport?

Some children who are within walking distance of their school may be eligible for home to school transport.

Children who may be eligible for home to school transport include:

Children who have special educational needs, disability or mobility problems (SEND) which mean they cannot reasonably be expected to walk to school (and there are no suitable alternatives to attend school nearer to home);
Children who live within ‘walking distance’ of their school but who could not reasonably be expected to walk due to the nature of the routes available (and there are no suitable alternatives to attend school nearer to home). This is often the case in rural locations, where there may not be a viable safe route for children to take to school;
Children aged 8-11 registered at a school more than two miles from home who are entitled to free school meals (this supersedes the 3-miles rule for children up to 11 years old);
Excluded children who are required to attend a school other than their registered school outside of walking distance;
Children over the age of 11 years old who are entitled to free school meals and who are registered at a qualifying school.

However, there are exceptions to the rule. Even where a child is deemed ‘eligible’ it is important to note that if there are other suitable travel arrangements available, the Local Authority may not be required to provide home to school transport.

Home to school transport appeals

“When choosing a school, the presence of school buses at the gate each day does not automatically mean that your child is entitled to a place on one,” says Polly Kerr, Senior Associate at Tees and specialist education law solicitor. “Schools have a duty to provide transport to eligible children – unfortunately, some children are simply not eligible. School transport can be somewhat of a minefield for parents with potential to cause practical problems. It’s important that parents understand, both when applying for school places and appealing them, when the Local Authority has a duty to provide school transport and when it does not. Understandably, transport provision can have a significant impact on choice of school and the family’s daily routine,” Polly continued.

Polly helps parents who need to appeal allocation of school places and home to school transport. If you need to make an appeal, Polly has the skills and experience to guide you through the process and help secure the best possible result for you and your child.

Call Polly on 03301 355806 or email polly.kerr@teeslaw.com for a confidential chat about your circumstances and how we can help.