IN farming, as in any type of business, it is vital to have a long term plan, writes Rob Selley ACCA.Where will you be five years, 10 years and who will eventually take over?

As hard as it may be there comes a time when you must relinquish control and let the next generation takes up the reins.

These decisions should not be just driven by tax planning however - there are some very important issues surrounding this to be considered.

A good place to start is to look at what is owned, who it belongs to, if it is a partnership asset or not and if there are any borrowings secured against it.

Then you will need to decide what everyone wants to achieve from this process. How much will the older generation need to live on, and who is responsible for what part of the business and is it to be split up into different parts?

If you make the decision to give away assets then you must consider any tax potential issues in respect of Inheritance Tax (IHT) and Capital Gains tax (CGT).

Any gains arising on the gifting of business assets can usually be held over, but this is not the case for investment assets.

Also, you do not want to jeopardise any future claims for agricultural property relief on the farmhouse by separating its ownership from the land.

Making sure you have an up to date will is also a vital part of this process together with a partnership agreement if required. These should also be reviewed regularly and certainly in the event of any changes.

Divorce must also be considered when looking at any future planning. Pre and post nuptial agreements are becoming increasingly popular in protecting the family farm.

As ever these issues can be very complex and professional advice must always be sought when considering succession planning.

A good adviser will have considered these issues many times before and will be able to use that experience to guide you through the process. Rob Selley ACCA is an associate and farming specialist with A C Mole & Sons. Contact: 01823-624450 or RSelley@acmole.co.uk You can follow him on Twitter at @RobAtACMole