The importance of a Partnership Agreement in your agricultural business

The majority of British farms are structured as a partnership between family members. Unfortunately, there is always potential for disagreements and disputes within partnerships, especially with those that both work and live together. therefore, it is important to have a well structured Partnership Agreement which can also provide access to valuable Inheritance Tax Reliefs.

What should you consider?

• Whether to be a General or Limited Partnership
• The age and health of the partners
• How the property and assets are held
• Profit share and loss apportionment
• Issues over direction or control and time dedicated to the business
• Banking and insurance
• The clarity of how to proceed with financial consequences should a dispute occur
• Exit clause, retirement, death, additions of new partners and dissolving the partnership
• Reviewing the agreement every 2-4 years

To discuss a Partnership Agreement in your agricultural business, please contact SFB on 03333 444 171 or email agriculture@sfb.group.