Chancellor of the Exchequer George Osborne did not have much room for manoeuvre in his 2013 Budget and is unlikely to have made many friends in the farming community.

Stephen Barratt, Rural Business Private Client Director with accountants James Cowper comments.

"Inheritance tax has come under George Osborne's spotlight.  Farming estates should be concerned with new legislation to be introduced in the 2013 Finance Act to amend IHT provisions that allow deductions from the value of an estate for liabilities owed by the deceased on death when calculating IHT

"These changes appear to be in response to avoidance schemes but I am concerned that as with many such changes the impact is felt more widely than intended.  Farming estates might be particularly vulnerable to the effect of these changes and should seek advice when the details of the proposals are known.

"The Government has also reneged on last year's promise to lift the nil-rate band from £325,000 to £329,000 from 2015.  The Chancellor has said that it will now remain at £325,000 until 2017-18 and this is disappointing."

"Also of concern will be a consultation later this year into the alleged miss-use of the partnership rules.  Details of the consultation have yet to be announced, but the Government has said they are likely to look the manipulation of profit/loss allocations by partnerships.

"Traditionally farming estates have operated as a partnership, largely because of the flexibility this offers.  Farming partnerships will need to keep a close eye on this consultation."

"Farms and rural estates will, however, welcome the scrapping of the fuel escalator and the Government's new Help to Buy scheme.  Many farms struggle to support more than one generation and any help that allows them to purchase their own home has to be good news.  Whether these homes will be built where they are needed remains to be seen."