Land Use & Diversification (L3) Flashcards
What is Diversification?
When a business enlarges or varies its range of products or field of operation.
What is a Wayleave?
A wayleave is an agreement between a land owner and a third party, permitting that third party to do something. There is usually an annual compensation payment due to the land owner or occupant.
What is an Easement?
An easement is a right that somebody holds over land owned by somebody else. Easements are attached to the land and are normally created by deed.
They may be registered on the title as held by the land registry.
What is the difference between a wayleave and an easement?
A wayleave is granted by a third party to the person or trust who owns the land and is terminable; an easement relates to the land itself.
How may diversification projects effect tax relief?
APR
If your farm/holding is no longer seen to be run with agricultural activity as its main purpose, then the APR would no longer be eligible.
What is the average price per bird pheasant shooting?
£50 + VAT
What is the average price per brace when driven grouse shooting?
£200 + VAT
What is the recommended maximum density for releasing pheasants?
1,000 per ha.
What would you expect to see in a typical shoot budget?
Income
- shoot lets rent
- game sold
- grants/subsidies
Cost of Sales
- poults
- feed
- vets
- beaters wage
Expenditure
- rent
- staff costs
- council tax
- insurance
- vermin control (ammo etc.)
- property maintenance
Depreciation
What is the average price per rod to fish on your beat?
Low season = £80 + VAT
High season = £280 + VAT
Why do you issue shoot contracts?
Are you aware of the legislation governing short term lets in Scotland?
Short Term Lets License (STLL)
What is a trading asset?
An asset held for the purpose of generating income/profit.
What is rollover relief?
Rollover relief allows a trader to defer the payment of CGT where all or part of the proceeds of a business asset are injected/reinvested into a new business asset.
What is the cost of a partridge chick?
£5
