Partnerships are actually more complicated than they might first appear and farming partnerships are no exception, in particular as there are usually significant capital assets involved. At Birkett Long we understand the different requirements that a farming family will have to its partnership arrangements. We will work alongside your accountants and land agents to ensure your partnership agreement, wills and land portfolio work together.
Most farm partnerships operate as traditional partnerships, although Limited Liability Partnerships (LLPs) and Limited Partnerships are used and increasing in popularity. LLPs operate under an entirely different regime but are treated in a similar manner for most tax purposes. We are able to advise on each type of arrangement.
We understand the dynamics in a family farming partnership often differ from a standard partnership with the desire to ensure partnership interests pass to family members and that land and property remain within the partnership for future generations.
Why have a partnership agreement?
Of course, it is possible to have a partnership without a written agreement; however to ensure a family's wishes are followed, then a written agreement is required. The written agreement lays out the rights and duties of all partners and will confirm arrangements on death or if a partner otherwise needs to leave the partnership.
Other advice
Birkett Long’s dedicated Rural Team can assist farming partnerships with all aspects of their business including:
- Buying into or exiting a farming partnership
- Borrowing in farm partnerships
- Farm partnerships tax planning, including IHT and the application of Agricultural Property Relief (APR), Business Property Relief (BPR)
- Agricultural holdings
- Farm Business Tenancies
- Contract Farming Agreements
- Land disputes
- Buying and selling agricultural land
