Succession of Landed Estates & Historic Houses still a major concern for owners

The issue of the succession of landed estates and heritage properties remains an over-riding concern, according to the 20 strong group of partners at Saffery Champness who comprise that firm’s Landed Estates & Rural Business Group,. Succession planning is more often than not at the top of the agenda at meetings with trustees and owners of properties who are concerned that the next generation is well placed to take forward what have often become complex businesses.

Mike Harrison of Saffery Champness, says: "The results of our ’Succession Survey’ of landowning clients, owning in excess of 3 million acres of agricultural land and property in the UK, showed that the practice of primogeniture, while still being implemented, has been replaced a more rational approach based on the needs and abilities of the heirs.

"There does appear to be more flexibility in the approach of owners towards succession, with some female heirs now taking on the responsibilities that their brothers have shied away from, in order to pursue other career aims. Certainly the proposed changes to the law on the royal succession may prompt a rethink by more traditional owners".

However, Saffery Champness comment that the proposals to change the law on royal succession are unlikely to extended to peers, this despite a campaign led by Lord Fellowes, the creator of Downton Abbey, whose wife cannot inherit her family’s title.

Mike Harrison concludes: "The policy of owners towards succession differs, due to the type and scale of the estate business. The over-riding issue for most landowners is to minimise the effect of Inheritance Tax, Capital Gains Tax and to make best use of the relief available. In comparison to the more punitive tax regimes of the late 1960s and 1970s, landed estates are operating in a more reasonable, though far from generous, tax environment. However, it is known that Inheritance Tax and Trusts are due for another review and there is therefore some uncertainty that this will remain the case. Landowners should seek advice on these matters now before any possible changes are made".