Close Asset Management is further diversifying its inheritance tax mitigation offering, Close Trading Companies, with the inclusion of commercial farming.
Following a fundraising process between August and November, Close Trading Companies will be investing GBP5m in commercial farming partnerships.
CTC will focus on arable and/or pastoral farms where the company can bring new management teams in to rejuvenate the yield and diversify the usage of the property to further enhance the commercial gains available.
CTC is an IHT mitigation service that Close has offered clients since 1996. CTC works by offering asset-backed trading opportunities to clients which enables them to defer or mitigate a potential IHT liability after just two years without having to dispose of their assets.
CTC offers clients access to a portfolio that can trade in forestry, managed public housing, self-storage, house building, commercial property development and now, also, commercial farming.
CTC has employed Manor House Farm as the asset manager for the Close Farm Partnership, to work directly with farmers who have a requirement for capital and to unlock the growth potential of their farms.
CTC will target farms which offer opportunities for development in addition to commercial farming, such as farm shops, small offices, holiday rentals or out-door sporting pursuits.
Steven Oliver, director of property at Close Asset Management, says: “Over the last two years a primary concern for many people has been erosion in the value of their assets; as such the issue of inheritance tax mitigation has been less prominent than perhaps it was before the crunch. However, IHT mitigation remains a key element of estate planning and certainly for Close’s clients a key concern. We believe that the monies raised to invest in farming, within the CTC framework, highlights the importance of IHT mitigation for anyone seeking to plan ahead and is testament to the results that CTC have delivered on clients behalf.”
Jonathan Naughton of Manor House Farm says: “We are delighted to be partnering with Close. This sector offers first rate opportunities for investors especially in areas where the tight supply of rural assets can be unlocked. We have been able to use our extensive experience of real farming issues to pursue opportunities to invest in diversification, family restructuring and landlord and tenant marriage value opportunities.”
