Published: 11/03/2024 By Jane Ruell
Since Brexit, a question we are often asked as Land Agents is how the new environmental schemes will influence tax planning. If, for example, a landowner takes arable land out of production and installs herbal leys to improve soil quality, will they still be seen as actively farming the land, and will they therefore still be eligible for Agricultural Property Relief?As anticipated, Jeremy Hunt’s March budget has provided some clarity on this issue by way of an extension to the existing scope of Agricultural Property Relief(APR). From 6 April 2025, land included in schemes such as the Sustainable Farming Incentive, Countryside Stewardship and Landscape Recovery, as well as the England Woodland Creation Offer and other similar schemes will be eligible for APR.
Similarly, land managed under an environmental agreement with, or on behalf of, the UK Government, Devolved Administrations, public bodies, Local Authorities, or responsible bodies will all be in the scope of APR. Furthermore, land will still be included if the environmental agreement has ended but the land continues to be managed in a way that is consistent with the original agreement.
This measure is cost-free to the taxpayer but has opened doors and provided certainty. As Rural Professionals we are able to be more confident when recommending opting into schemes with serious environmental outcomes.
If you are interested in entering your land into one of the new schemes and would like guidance, please do get in touch with Graduate Rural Surveyor Jane Ruell in our Tiverton Office on 01884218911, or one of our Rural Grants experts in your nearest office (below) who can guide you towards the most advantageous option for the future of your farming business.
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