Tax and farming arrangements

With so much uncertainty in the farming industry and the future capital taxes legislation that impact on farms it is essential to look at alternative farming solutions. The need to review contract farming agreements and other alternatives has never been greater amidst all this change. First there has been the Agriculture Act receiving royal assent on 11 November 2020. This has led to the loss of ‘area based’ subsidies to be replaced by ‘public goods’ subsidies to restore the landscape under public products. In addition there has been the review of inheritance tax by the all-party parliamentary group with the suggestion to move to a flat rate with the possible loss of agricultural property relief and business property relief.

The Tenant Farmers Association and Baroness Rock have also been very critical about what can be considered ‘share’ farming arrangements and have been pushing for change. However...