Written by Administrator from Farming Monthly National
As part of the Spring Budget, the then Conservative Government announced its decision to extend the scope of Agricultural Property Relief to include all environmental land management (ELM) schemes. This expansion demonstrates a continued commitment to support farmers and encourage conservation of the British landscape via tax incentives.
Agricultural Property Relief (APR) is a tax planning mechanism available to farmers and landowners. APR provides total or partial relief from Inheritance Tax, reducing the tax burden on those passing agricultural land and businesses to the next generation of farmers.
From 6 April 2025, farmers and landowners engaging in ELM schemes will be able to claim APR on land being used for the purposes of these schemes, meaning such land can be passed down free of or at a reduced rate of Inheritance Tax. There is also hope that by incentivising farmers and rural landlords to adopt ELM schemes for tax relief, land will be removed from intensive agricultural processes and used to achieve longer-term environmental objectives.
ELM schemes have replaced the system of financial support that was previously available through the UK’s membership with the European Union’s Common Agricultural Policy. ELM schemes aim to support the rural economy while contributing towards the UK’s 25-Year Environment Plan and commitment to achieve net zero carbon emissions by 2050.
Aaron Spencer, Partner and Head of Private Client at law firm Furley Page, has extensive experience advising rural businesses, farmers and landowners. He said: “Following the election of a new Labour government there is of course anxiety surrounding the impact of any changes to tax regimes, however, in November 2023 the Shadow Environment Secretary confirmed that there were no intentions of axing APR should a Labour government come to power.
“The extension of APR provides farmers and rural landowners with new opportunities to diversify and participate in ELM and woodland creation schemes. This expansion in the relief will enable many more farm businesses to benefit from better access to the financial support and subsidies on offer through ELM schemes whilst securing lower rates of Inheritance Tax on the value of their land and businesses.”
Whether you’re an experienced farmer or a new rural landlord, Furley Page can help you to navigate the intricacies of inheritance tax on farmland. Having acted for farmers and rural landowners for generations, the firm’s multi-discipline team provides solutions to meet the complexities and challenges faced by the agricultural and rural business sectors.
For more information about Furley Page’s agriculture and rural business services, please email Aaron Spencer [email protected] or call 01227 763939. You can also follow the firm on X (formerly Twitter) @furleypage and on LinkedIn.
The post Welcome extension of Agricultural Property Relief for farmers should remain under Labour Government appeared first on Farming Monthly National.
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As part of the Spring Budget, the then Conservative Government announced its decision to extend the scope of Agricultural Property Relief to include all environmental land management (ELM) schemes. This expansion demonstrates a continued commitment to support farmers and encourage conservation of the British landscape via tax incentives.
Agricultural Property Relief (APR) is a tax planning mechanism available to farmers and landowners. APR provides total or partial relief from Inheritance Tax, reducing the tax burden on those passing agricultural land and businesses to the next generation of farmers.
From 6 April 2025, farmers and landowners engaging in ELM schemes will be able to claim APR on land being used for the purposes of these schemes, meaning such land can be passed down free of or at a reduced rate of Inheritance Tax. There is also hope that by incentivising farmers and rural landlords to adopt ELM schemes for tax relief, land will be removed from intensive agricultural processes and used to achieve longer-term environmental objectives.
ELM schemes have replaced the system of financial support that was previously available through the UK’s membership with the European Union’s Common Agricultural Policy. ELM schemes aim to support the rural economy while contributing towards the UK’s 25-Year Environment Plan and commitment to achieve net zero carbon emissions by 2050.
Aaron Spencer, Partner and Head of Private Client at law firm Furley Page, has extensive experience advising rural businesses, farmers and landowners. He said: “Following the election of a new Labour government there is of course anxiety surrounding the impact of any changes to tax regimes, however, in November 2023 the Shadow Environment Secretary confirmed that there were no intentions of axing APR should a Labour government come to power.
“The extension of APR provides farmers and rural landowners with new opportunities to diversify and participate in ELM and woodland creation schemes. This expansion in the relief will enable many more farm businesses to benefit from better access to the financial support and subsidies on offer through ELM schemes whilst securing lower rates of Inheritance Tax on the value of their land and businesses.”
Whether you’re an experienced farmer or a new rural landlord, Furley Page can help you to navigate the intricacies of inheritance tax on farmland. Having acted for farmers and rural landowners for generations, the firm’s multi-discipline team provides solutions to meet the complexities and challenges faced by the agricultural and rural business sectors.
For more information about Furley Page’s agriculture and rural business services, please email Aaron Spencer [email protected] or call 01227 763939. You can also follow the firm on X (formerly Twitter) @furleypage and on LinkedIn.
The post Welcome extension of Agricultural Property Relief for farmers should remain under Labour Government appeared first on Farming Monthly National.
Continue reading more content from Farming Monthly...
If you are enjoying what you read then why not considering subscribing here: https://www.farmingmonthly.co.uk/subscriptions/
