Welcome to our Autumn edition of our Agricultural and Farming newsletter
What an extraordinary few weeks it has been for UK politics.
Much has been reported of Liz Truss being the UK’s shortest serving Prime Minister. What hasn’t grabbed the headlines is Ranil Jayawardena being the shortest serving Secretary for Environment, Food and Rural Affairs at one month and nineteen days. It is an office that Liz Truss held for almost two years from July 2014.
B ut it was Michael Gove as Secretary of State in 2019 that shifted government policy to its focus on the environment and public money for public goods in the form of Environmental Land Management Scheme. Of course, the permanence of the DEFRA civil service means that whilst there is turbulence in the seat of the Secretary of State, the day to day continues. Yet the rhetoric of the Truss administration and environmental stewardship being a secondary objective to economic growth poured fuel on the policy fire, and layered even more uncertainty on to a maturing policy for which clarity is so desperately needed. It really is unhelpful. The sector is facing so many challenges. We are on the path of diminishing subsidy so clarity and consistency on the policy is needed so farmers can plan, adapt, and invest. Let us hope Therese Coffey delivers that. It remains to be seen. The theme of our articles in this edition of our newsletter is tax which is a vital consideration when appraising the implications of adapting and planning for change. Housing development is a pillar of economic growth, and we are seeing a number of clients being approached for option and promotion agreements. Chris George examines the key tax considerations should the developer come calling.
The pandemic led to a surge in staycations, and the demand meant many were able to enjoy a big uplift in financial contributions whilst others have diversified further to take advantage of the opportunity. Simon Hurren recaps the key tax considerations and the importance of understanding the inheritance tax relief position. Climate change and protecting the environment is shaping legislation, the tool to influence corporate behaviour. Bio-diversity Net Gain (BNG) projects present a new market for farmers and landowners to monetise the opportunity and Chris George looks at the tax implications. Tax simplification has been a goal since the introduction of self-assessment and basis period reform is the latest step to try and achieve it. The alignment of reporting taxable profit from financial year to fiscal year will accelerate profit charged to tax for some and careful planning is needed to manage cashflow and measure the impact. We look at what can be done. Adaption and change sustain the business for present and future generations and a key tax case in the consideration of succession planning is Balfour. Tax partner Gavin Birchall revisits the key issues of that case since it is important that the presumption of IHT relief being available for a farming business is not compromised by business decisions necessarily taken to survive.
Finally, I’m delighted to announce that we’ll be holding our next Farming Conference in January, with a fantastic line up of speakers who will be discussing some of the most compelling issues facing our sector at the moment. If you are interested in registering for this online event on 17 January, please email events@scruttonbland.co.uk to reserve your place. I very much hope you find our articles of interest. As ever, do reach out to any member of our expert advisory team to discuss any matter which concerns you or that you would like to know more about.
Best wishes,
Nick Banks
Nick Banks
AGRICULTURE AND FARMING | SCRUTTON BLAND | 3
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