Repurposing farm buildings into holiday accommodation

With the Agriculture Act 2020 orchestrating the move towards farming for the environment and a commercial need for diversification to fill the ‘subsidy gap’ following the loss of farm subsidies there has been a push for farmers to look at projects that will increase profits in the future.

Furnished holiday accommodation

Furnished holiday accommodation is currently a positive direction for farmers to pursue especially with the Covid-19 lockdown aftermath increasing the demand for UK farm holidays staycations and camping.

Repairs and renovation to farm property will be needed to provide suitable farm accommodation. A recent case E Balnakeil (TC8143) (tinyurl.com/TX-BuildRen) gives guidance on the importance of tax planning. It concerned a farming partnership denied relief on the costs of altering run-down farm buildings to convert to holiday accommodation. The costs were found to be capital in nature rather than revenue and not wholly and...