Changing expectations

For many people returning to the farm or family business after a career elsewhere, expectations have shifted from the ways of working that suited previous generations. The need for good connectivity, manageable working hours, and a stronger focus on equality, diversity and environmental responsibility are values the next generation has often gained from other workplaces. For older farmers, these changes can sometimes feel confronting.

The day‑to‑day world within the farm or business may not have changed much over the last 40 years, yet we now face a major generational shift, particularly with the revised taxation regime taking effect from April 2026.

A sensible first step is for both generations to take time to understand each other’s perspective and acknowledge that their views are legitimate. There will always be areas of shared ambition. However, what is clear is that the thinking that got us to today will not be the thinking that takes us into the future. For younger family members, the taxation changes could provide the catalyst needed to step in earlier and take on more responsibility.

Treading on toes

Years at the helm naturally lead to well‑established routines and ways of working. A successor will inevitably bring new ideas, fresh skills and possibly different approaches to generating income or managing the business. The next generation does not want to tread on toes or create resentment. Having an agreed plan for how and over what period the handover takes place helps ensure the business does not stagnate due to fear of upsetting anyone.

The need for certainty

For the next generation, knowing what will happen and when is key. Barring unforeseen events, if a successor knows that by a particular birthday or calendar year they will be taking on all or part of the family business, they can plan the rest of their life accordingly. Increasingly, younger family members have careers away from the farm and return with valuable experience. Certainty on timing means they can make full use of the intervening years, benefitting everyone. It also ensures they can gain any additional training or expertise required.

The fear of letting go

Advisors play an important role in brokering these conversations with sensitivity, making sure the needs of the retiring generation are fully considered alongside the interests of the next. In the worst cases, tax considerations can overshadow family values, affecting decisions around housing, divestment or business risk.

Sometimes, advisors who have worked with the business for many years may also need to accept that a new set of skills is required. Just as a good recipe relies on carefully changing one element at a time, a successful transition may require fresh thinking. A new generation of trusted advisors can be as important as a new generation of farmers.

Communication is key

The cornerstone of successful succession is open communication. Families should work with advisors and involve every generation in an honest and constructive way to produce a clear, actionable plan. Such a plan provides certainty and clarity for everyone – including those not directly involved in the business – and gives the next generation confidence to engage fully.

For the older generation, a well‑prepared succession plan can ease worries about whether the next generation is ready, reduce concerns around inheritance tax, and lessen stress at the time of death by ensuring the business transition is already underway.

A moment for action

Time is of the essence as we move closer to the taxation changes – and, indeed, to the natural process of succession. For some families, selling the business may be the right opportunity for a fresh start. For others, now is the ideal moment to bring forward the necessary conversations around gifting or incorporation, and begin navigating the choppy waters ahead.

Further information

Contact Rhydian Scurlock-Jones and Georgina Watson

Savills Rural