https://www.icaew.com/rss/farming-and-rural-businessLatest sector news and viewsen{E6BF8B2E-5C6C-4563-AD32-12F70089EBC7}https://www.icaew.com/technical/farming-and-rural-business/articles/consulation-on-close-company-payments-to-participatorsWhilst attention may have been focused elsewhere in the latter part of the tax year, a consultation document released on 19 March may be worth some consideration in the near future.{BA8A66A1-B055-4DB0-8395-71441CDBE0C9}https://www.icaew.com/technical/farming-and-rural-business/articles/old-macdonald-had-a-farm-ee-eye-ee-eye-oh-noNearly a year on from the First-tier Tribunal judgement in Charlotte Macdonald v the Commissioners for HMRC, how have diversified rural businesses been impacted?{BAEF353C-1FEA-4997-9E82-FE1CBD049985}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-december-2025The angst of another Budget has come and gone. It does seem that the positive points from the Budget of 2025 are the things that haven’t been touched. For example, the seven-year gifting rule and the CGT tax free uplift on death.{17B55AE8-5E9E-4F75-A7A1-B0A9133C1042}https://www.icaew.com/technical/farming-and-rural-business/articles/budget-2025-what-does-it-mean-down-on-the-farmAs Rachel Reeves' second Budget starts to sink in, it is clear that, once again, there is relatively little in it to cheer the rural economy.{67B79DD2-DC86-4163-BD1C-101EE8A3D9CC}https://www.icaew.com/technical/farming-and-rural-business/articles/vat-status-of-poppadoms-and-impact-on-a-farm-shopAs shown by the ‘Jaffa Cake’ and ‘marshmallow’ VAT status sagas, the charging of VAT on ‘marginal’ food supplies can cause ramifications in the confectionary industry with implications for farming. In Walkers Snack Food Ltd v CRC in the Upper Tribunal, the ‘Sensations Poppadom’ came under question as to whether it was zero or standard-rated. Some might argue that the name ‘Walkers Snack Food’ does not promote zero-rated food. And who doesn’t love all those products. For the farm shop that acts as village shop and supplier of ‘goodies’ for all the farm diversified activities of campsites, farm walks and trekking, these products can all be necessary supplies.{825A0982-1CD2-48E8-A4A8-8A8B0405DB43}https://www.icaew.com/technical/farming-and-rural-business/articles/farming-what-will-the-next-five-years-bringFarming is certainly a profession where you need to be skilled at dealing with the unexpected. Planning is notoriously difficult given the vagaries of the weather along with the volatility of markets and the ability of external events to impact the industry.{7677A064-7911-402E-84E2-F28232C3B55B}https://www.icaew.com/technical/farming-and-rural-business/articles/septic-tanks-time-for-a-closer-lookThose living in rural areas will know about septic tanks, a crude but surprisingly effective device for dealing with wastewater where no mains drainage is available. The technology has been around for centuries and, since there are no moving parts, there has often been little incentive for owners to upgrade. Unfortunately, traditional septic tanks are not particularly good at keeping nitrates and phosphates out of the water supply network, particularly where the run-off from the tank passes straight into a watercourse. As a result, in 2015 regulations were introduced to make such systems illegal from 1 January 2020. In practice, the current rules are largely ignored and septic tanks are normally only upgraded when a house changes hands. However, things are now moving on.{A387D127-D48F-4698-9EBD-7457C379A98C}https://www.icaew.com/technical/farming-and-rural-business/articles/grobs-not-always-a-bad-thingAs we will all be aware, the concept of the gift with retention of benefit, or GROB, was introduced in 1986 to avoid individuals making gifts with strings attached. The legislation was designed to combat instances of donors seeking to transfer property outside of their estate, whilst continuing to derive benefit. As a result, most estate planning starts with a consideration of the GROB aspects and endeavours to construct a plan which avoids any situation where a GROB might occur. This has become particularly relevant in an agricultural context recently where partnership reorganisations tied to capital gifts need careful consideration. Sometimes, however, it can be helpful to “embrace the GROB.” {9D2E11BD-A029-4E68-9602-11C639968186}https://www.icaew.com/technical/farming-and-rural-business/articles/consultationsReaders may not be aware, but the Farming & Rural Business Community advisory group is on the circulation list for consultations on which ICAEW may wish to contribute a view, and occasionally we add items to that list (such as DEFRA consultations) which do not always get picked up through the usual channels.{E72D775F-4582-4DE3-981A-A6B620A5CE0B}https://www.icaew.com/technical/farming-and-rural-business/articles/farming-and-rural-business-conference-highlightsSubject Matter Expert for the Farming & Rural Business Community, David Missen, guides us through some of the important points made in the recent Farming & Rural Business Conference.{67043888-0D06-4036-A882-6BEA1CB13940}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-september-2025After a sunny and dry spring and summer, September has started with some welcome rain.{A0C76927-929F-4F9D-B6E5-D56F8B666F9A}https://www.icaew.com/technical/farming-and-rural-business/articles/biodiversity-net-gain-where-are-weAs mainstream agricultural profitability falls and the Budget for on-farm environmental schemes is under pressure and uncertain, many businesses are starting to consider other possibilities for diversification, including the longer-term environmental opportunities presented by Biodiversity Net Gain (BNG) and Nutrient Neutrality (NN).{FB2BF82F-BBE2-489C-A531-92EB5B6D69DA}https://www.icaew.com/technical/farming-and-rural-business/articles/farmland-values-where-are-they-goingAs readers will be aware, the agricultural industry is not currently at its most buoyant.{4D315DE3-B330-46C8-86A0-68026C089AB7}https://www.icaew.com/technical/farming-and-rural-business/articles/iht-reforms-details-announcedFollowing the Autumn Budget and the consultation on trusts which took place in the Spring, HMRC released a series of papers on 22 July summarising the points raised in the consultation and outlining the draft legislative changes.{64CB7588-81BB-4950-8A25-AC0930D068F8}https://www.icaew.com/technical/farming-and-rural-business/articles/sdlt-and-farmingFarmers up and down the country are reviewing the ownership of their land and properties in an attempt to mitigate the effects of the changes to Agricultural Property Relief and Business Property Relief that were announced in the Autumn 2024 Budget and which are now enshrined in draft legislation. An often overlooked tax that needs to be considered when transferring land and property is SDLT.{E8D301F2-98D6-4116-8486-4383E6A41C41}https://www.icaew.com/technical/farming-and-rural-business/articles/making-your-farming-business-future-proofReading the farming press is often a sombre experience with lots of negative headlines and plenty of examples that demonstrate the challenges in the industry. In some ways, it has always been the same in an industry faced with so many variables, with farmers generally looking from the perspective of a glass half empty. Whilst the challenges are certainly considerable, the last few years have seen a period of better profitability in most sectors, and that has provided the chance for many farmers to take a long hard look at the future and start to make medium to long term plans to future-proof their business.{CE2D955A-2B67-4AE7-BFB4-5C3A7FFE131D}https://www.icaew.com/technical/farming-and-rural-business/articles/what-the-iht-changes-mean-for-farmersAs has been well documented in the national press, significant changes were made to inheritance tax reliefs (“IHT”) as part of Rachel Reeves' Autumn budget. These changes could force individuals to sell off farms that have been in the family for generations, due to the “dry tax charge” that will potentially arise on death. Essentially, a dry tax charge is a tax liability that crystallises without an individual receiving any funds to discharge the liability.{C82E3919-4F7A-4D31-8B75-28100D1461C3}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-april-2025Since my last ‘view from the Chair’, it feels like there has been a constant rollercoaster of uncertainty for farming businesses.{FF169123-9D03-4067-830F-8F44571357F8}https://www.icaew.com/technical/farming-and-rural-business/articles/why-selling-the-farm-to-the-family-for-a-pound-generally-doesnt-workAs the impact of the Budget 2024 changes sinks in, it is clear that asset transfers will feature heavily in the range of responses suggested to (or by) clients. Certainly, this is the case in some of the more imaginative proposals which have been suggested in social media! However, these “cunning plans” tend to ignore the impact of the various related party rules, which are intended to ensure that everyone is related to almost everyone to whom they might like to pass assets and hence market value is used instead of stated transaction value. It may therefore be useful to draw together the main rules as extracted from HMRC manuals for reference.{B87EAD0A-8261-4F9D-96E9-469E2EB1F891}https://www.icaew.com/technical/farming-and-rural-business/articles/cash-basis-a-practical-exampleAs the first sets of accounts for the 2024/5 financial year start crossing desks, it may be worth reconsidering the use of the cash basis, which is, of course, the new default position for unincorporated accounts. The switch was announced in 2023 and will apply from 2024/5. Those wishing to continue on an accruals basis will now need to opt out on the Self Assessment return.{662181D3-430E-40DB-A6A7-9DA7708E82D2}https://www.icaew.com/technical/farming-and-rural-business/articles/life-insuranceThe changes to Agricultural Property Relief and Business Property Relief, announced in the Budget on 30 October 2024, bring life insurance back into sharp focus.{E3599BEF-ECF6-4A28-86E1-A25F22A3ED2A}https://www.icaew.com/technical/farming-and-rural-business/articles/post-budget-planning-an-old-friend-returnsAs the furore over the Inheritance Tax changes in the 2024 Budget continues to rage, and practitioners dust off their tax planning archives to find ways to help the next generation, an old and sometimes overlooked tool is coming back to prominence.{C5024BD8-8ABA-4E15-83BB-048CAAAF3E29}https://www.icaew.com/technical/farming-and-rural-business/articles/advising-in-uncertain-timesI haven’t seen a period like the last eight months since starting in practice.{1689CC29-79DB-4854-B3E8-8A57B3BAF263}https://www.icaew.com/technical/farming-and-rural-business/articles/poultry-in-the-ukSince most of the articles in these newsletters tend to be of more general application (and have been somewhat downbeat recently), it is encouraging to hear that the poultry industry in the UK seems to be performing well.{6F1E33BF-AC3F-4FA4-B5C1-33704F59BCAF}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-november-2024Since my last ‘view from the Chair’, I have moved from dealing with clients and their pre-budget panic and worries to now dealing with the reality of the first Labour Government’s Budget in 14 years. The Government has shown that they intend to raise money from the business community to fill the ‘black hole’. The changes announced have blindsided many and seems to be contrary to the Government’s desire to drive economic growth via private investment.{99637831-D7CC-4ECE-8D53-745D9FDF50CD}https://www.icaew.com/technical/farming-and-rural-business/articles/hmrc-changes-and-sarsRecent changes to HMRC working practices seem to have thrown up an anomaly where there are one or more trades (some of which carry brought forward losses) and employment or pension income. Immediately after the submission of a SAR, the total self-employment income, without allowing for future loss reliefs, is taken into account in coding, which has the effect of restricting personal allowances. The problem can be rectified within the taxpayer account but it is not straightforward.{49C9496C-E7EB-451B-966D-81FF76FB6A0B}https://www.icaew.com/technical/farming-and-rural-business/articles/more-budget-newsBehind the main Budget announcements, a few other matters of rural interest can be found.{820C19CA-D89A-4722-A5B7-6A59644FCB14}https://www.icaew.com/technical/farming-and-rural-business/articles/farming-recovery-fundIn a largely unannounced move, the RPA have recently (5 November) paid out a compensation amount to holdings within areas affected by flooding last winter. The claims are calculated automatically and require no evidence of damage and no evidence of land remediation. You will find that clients have received letters similar to that copied below.{368A5F02-6625-4881-A395-2E2F7425A43D}https://www.icaew.com/technical/farming-and-rural-business/articles/furnished-holiday-let-reform-the-last-gasp-from-the-march-2024-budgetThe recently published details of forthcoming reforms to the tax treatment of Furnished Holiday Lettings (FHL) income, which were initially announced in the 2024 Budget but omitted from the Finance Bill, signal significant changes effective from the end of the 2024/5 tax year. These reforms, which were announced on 30 July, were confirmed as part of the 2024 Budget package.{33411AD8-7652-4107-A7E3-E40F0D18A96B}https://www.icaew.com/technical/farming-and-rural-business/articles/further-thoughts-on-the-halloween-budgetNow that the dust has settled, at least temporarily, on the Autumn Budget, it is worth looking at the implications for those taxpayers who are likely to be affected.{DC558A05-0E0A-4957-B975-9B1E84B12A12}https://www.icaew.com/technical/farming-and-rural-business/articles/budget-2025-whats-in-it-for-agricultureOn the whole, Rachael Reeves first Budget has not been received well by the farming community. The NFU said “APR changes would put family farms at risk”, Victoria Vyvyan, president of the Country Land and Business Association, said the change was “nothing short of a betrayal” and the Guardian summarised that “farmers in England must do more with less”. In contrast, food security Minister Daniel Zeichner said: “our commitment to farmers and the vital role they play to feed our nation remains steadfast."{EA5A4B61-D5A8-47CD-858D-545272A1CE72}https://www.icaew.com/technical/farming-and-rural-business/articles/renewable-energy-wind-turbinesSolar panels have dominated the renewable energy sector for many agricultural clients, often utilising unused roof space to provide clean and lower cost energy. This has been of particular importance in recent years with the large rise in energy costs, especially when farm buildings can be energy intensive. Energy storage can be expensive or not possible, meaning the peak energy generation often doesn’t align with the demands of the farm, such as for running cold stores over winter and spring. Wind turbines could be the solution.{B5262AB4-0F92-41C4-97F2-7F69FB9C9A25}https://www.icaew.com/technical/farming-and-rural-business/articles/jeremys-blog-1-november-2024-a-budget-for-spending-not-growthAs the dust settles on yesterday’s Budget, we have much to think about.{56CFD90E-CDD7-4624-A25C-7B6CE7C1F1A9}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-august-2024As I write, the combines continue to roll in the North East of England. After a wet Autumn, Winter and Spring, this harvest was always going to be a difficult one. Many of my farming clients will be relieved once harvest 2024 is completed. They also know they are lucky compared to farmers further South who were forced to write off crops in the Spring. Pressures on cash flow will continue to be a focus for farming businesses.{ECE8FDBE-15E6-40D9-8F57-F137C3B849A6}https://www.icaew.com/technical/farming-and-rural-business/articles/succession-preparing-for-the-6-dsHeather Wildman, from Saviour Associates in Scotland, is a specialist in family succession and lives in Scotland. Preparing for the 6 Ds in life.{0C23201D-C769-42B4-87B6-340FF1FF8357}https://www.icaew.com/technical/farming-and-rural-business/articles/vat-on-farm-food-navigating-the-zero-rateFarmers diversifying into processed foods face complex VAT rules. Julie Butler FCA explains how perception can impact tax rates.{5895E6A7-8843-4E04-94A5-70DD55F32A96}https://www.icaew.com/technical/farming-and-rural-business/articles/the-need-to-agree-the-farm-executors-charge-fees-from-the-startRead to avoid considerable pain in the future.{99237EA0-AEED-4E97-BF4A-5309547D9906}https://www.icaew.com/technical/farming-and-rural-business/articles/total-income-from-farming-2023-what-does-it-tell-usDEFRA’s annual report on farm incomes for harvest 2023 was published on 11 July. It presents a fairly depressing picture. The figures, covering England only, are produced on a model that takes account of depreciation but excludes proprietors labour and notional rent on owner occupied land, so, although the terminology is slightly different, the result is not dissimilar to a typical set of farm accounts.{978EC3FB-53AA-4CB1-9E04-D457D98261C8}https://www.icaew.com/technical/farming-and-rural-business/articles/butler-and-others-v-hmrc-2023The result of a recent First Tier Tribunal case on a failed claim for 100% Business Property Relief (BPR) on an interest in a Limited Liability Partnership (LLP) which ran a wedding business will be of interest to members and rural businesses alike.{3BE602A7-CD23-4FA1-8532-81BA5A41AABB}https://www.icaew.com/technical/farming-and-rural-business/articles/proprietary-estoppel-more-cases-come-to-courtThe concept of proprietary estoppel has developed considerably in recent years, and many of the relevant cases are drawn from the farming industry – perhaps unsurprisingly given the high capital values involved and the exclusive commitment which participation in a farming business requires.{1B4972CB-265A-4017-BE08-682958D612BA}https://www.icaew.com/technical/farming-and-rural-business/articles/snippetsOne of the advantages of a committee composed almost entirely of practicing rural accountants is that sometimes trends can be identified, particularly regarding approaches from HMRC.{28FDEF75-3777-4DE7-A75D-64267FE8FC94}https://www.icaew.com/technical/farming-and-rural-business/articles/when-is-agricultural-land-not-agricultural-landReaders will be aware that for some time HMRC have been looking at claims for the lower level of SDLT on mixed transactions.{2A1CF722-0177-41B1-A082-DA9BAB3D8F07}https://www.icaew.com/technical/farming-and-rural-business/articles/making-sense-of-the-rpa-moneyUnderstanding DEFRA payments has always been challenging and the introduction of numerous new schemes has only added to the confusion. Initially, the main DEFRA payments came from the Basic Payment Scheme (BPS). Despite some delays in the early years, these payments were typically disbursed in early December of the claim year. Stewardship payments usually followed a few months later, typically in March or April after the scheme year, requiring careful consideration for those with fiscal year-ends.{6DD787A1-FCE5-40AC-95C8-736FEE23DD00}https://www.icaew.com/technical/farming-and-rural-business/articles/mind-the-gapThe 'tax gap' gained significant attention during the General Election, with both major parties promising to reduce it to enhance state finances. However, reducing the tax gap is a complex issue due to several factors.{53DC1A70-84D9-466A-87C9-4FDC8EE68A83}https://www.icaew.com/technical/farming-and-rural-business/articles/contract-farming-and-share-farming-arrangements-a-reminderShare farming is relatively unusual and can be distinguished in that both the landowner and the share farmer are regarded as separate occupiers of the land, each occupying it for the purposes of farming, so there are two farming businesses operating on the same land. These businesses operate separately, but their combined efforts result in the agricultural output of the land (eg, grain, milk, meat or wool). Each party is then rewarded by a pre-agreed share of the value of the gross output. The agreement between them will define their separate activities and responsibilities, specifying who is liable for which costs, such as maintaining fixed equipment or providing fertilisers.{DCD1A8E4-8C43-44DA-9BC5-C19D8B93846F}https://www.icaew.com/technical/farming-and-rural-business/articles/farm-dispute-in-the-headlines-estoppel-and-unjust-enrichmentDiscussing the case of Mate v Mate.{C6C39408-D417-4EEC-A974-2C42973A19F5}https://www.icaew.com/technical/farming-and-rural-business/articles/the-view-from-the-chair-april-2024In both my last review and the webinar our committee recently hosted, I mentioned one of the biggest challenges facing many farmers this year – the significantly wet autumn and spring they have faced. In the words of Farmers Weekly, it has been “wetter than an otter’s pocket”.{6C5B205A-2AA7-468A-9120-B6D5AABFA754}https://www.icaew.com/technical/farming-and-rural-business/articles/increase-in-rego-demand-offers-additional-revenue-stream-for-renewable-assetsFarmers and landowners with renewable electricity generating assets could be missing out on a useful income stream following recent changes in the market.{F0EDFB0D-A853-468D-A095-4AC133BE4715}https://www.icaew.com/technical/farming-and-rural-business/articles/annual-meeting-with-the-central-association-of-agricultural-valuersIt is now customary for a team from the ICAEW Farming & Rural Business Community to meet annually with representatives of the CAAV to discuss matters of mutual interest and concern.{02F64084-79A4-4CB7-9F7F-EF6620B4A80B}https://www.icaew.com/technical/farming-and-rural-business/articles/book-review-hinton-ampner-farmings-endReaders will recall that a couple of years ago we reviewed “Farming Hinton Ampner – the Brexit/Virus Year” by Charlie Flindt. For those unfamiliar with his work, Charlie was for many years a contributor to “Farmers Weekly” and his regular and outspoken “Flindt on Friday” column was often a subject of conversation for several weeks afterwards.