Glastonbury founder Sir Michael Eavis 'could avoid £80m in inheritance tax' after making key change to festival

Daily Mail​

6 days ago

Glastonbury founder Sir Michael Eavis could reportedly avoid £80million in inheritance tax after transferring most of his financial interest in the iconic music festival over to his daughter.
The event saw its pre-tax profits double to almost £6million last year with revenues reaching a stunning £68million after flogging 210,000 tickets for £300 each.
Experts claim Glastonbury - which is set to be headlined this year by The 1975, Neil Young and Olivia Rodrigo - could be worth as much as £400million, while others say in reality it could be far more if it was sold to the likes of Sony or Universal Music.
The true value of Glastonbury is hard to quantify because of the money it donates each year to charities. Last year more than £5.9million went to organisations including Oxfam, Greenpeace and WaterAid.
But by transferring his entire shareholding in Glastonbury Festival Events Ltd to Emily, 45, 89-year-old Sir Michael's family could save as much as £80million in inheritance tax, The Times reports.
Glastonbury described The Times' estimations of its value as 'wildly speculative' and said the festival would 'never be sold'. They said the organisation and Sir Michael himself 'have always been, and will always be, happy to pay their due tax'.
The company owns the festival's rights, trademarks and distributes the event's profits to charity. Three quarters of the music mogul's shares have also been transferred to a family trust.
Shares gifted to a family member are not taxed under inheritance laws as long as the person who gives them survives for seven years.
By taking them out of Sir Michael's estate, they can also reduce its valuation meaning that inheritance tax on his overall possessions is potentially lowered.
The shares were transferred to Emily in October and there is no suggestion they knew of Rachel Reeves' upcoming announcement that she would impose death dutues on family businesses.
Emily started co-running Glastonbury with her elderly father in 1999 and has gradually become the driving force behind the festival.
The family may also face a huge bill on Worthy Farm, the 1,500 acre site of the annual music spectacular, which is valued at as much as £13.5million and is solely owned by Sir Michael.
An inheritance bill on the land alone could total £2.5million, The Times reports, and the family has not made any efforts to avoid paying the 20 per cent tariff now faced by farmers across the country whose land is worth more than £1million.
Glastonbury Festival said: 'With his 90th birthday approaching, Michael Eavis proceeded with his long-held plan to pass control of the Festival over to his daughter, Emily.
'The past few years have already seen Emily take over the day-to-day organisation of the event, and this latest change was simply another part of that process.
'Glastonbury Festival and Michael Eavis have always been, and will always be, happy to pay their due tax. The Festival is also proud to support good causes - making payments of over £5.9m to charitable causes and campaigns in 2024.'
The new rules mean farmers can pass on £1 million of agricultural assets tax-free, in addition to exemptions for all inheritances - a £325,000 tax-free allowance, plus a further £175,000 for a main residence.
The Treasury argues this means most farmers can use all three and pass on £1.5 million of assets without tax - and if the farm is owned by a married couple, both are eligible for the exemptions. This would enable them to jointly pass on £3 million of assets.
The Treasury says just 27 per cent of farms will be affected, but the NFU says the true figure, based on analysis of DEFRA figures, is 66 per cent.
Critics have repeatedly warned that farming families who are asset-rich on paper will now not have enough money to cover the inheritance tax. The Treasury defended its approach to changing farmers' inheritance tax relief as 'fair and balanced'.
Since its debut in 1970 Glastonbury has attracted thousands of eager music fans to support their favourite artists come rain or shine.
The headline acts for the first year were Marc Bolan and Keith Christmas, with 1,500 guests getting in for £1, a ticket which included free milk from the farm. Festival-goers would camp wherever they found a spot for their humble tents.