Managing farmland around a house

Question 1

Practical implications on contract farming agreement on 30 acres surrounding farmhouse

Answer 1

• Farmer retains some control over land
• farmer still has obligations for paperwork
• Land is likely being ran with contractors larger operation so good practise may slip over

Question 2

Tax implications on contract farming agreement on 30 acres surrounding farmhouse

Answer 2

• Land would qualify for Business Property Relief and business reliefs from capital gains tax.
• Land would also qualify for APR
• House would unlikely qualify for relief as day-to-day farming isnt done from house. and unlikley character appropriate for 30 acres.

Question 3

Pros of letting the area on a tenancy instead?

Answer 3

• Give secure income with tenant taking business risk
• Relieve client of the responsibilities
• Cheaper and more practical
• Land would still qualify for APR

Question 4

Cons of letting the area on a tenancy instead?

Answer 4

• Farmer would loose immediate control over the land
• House still not qualifiable for APR

Question 5

What other uses might there be and their practical implications

Answer 5

Mowing/grazing licence - Currently arable so would need to establish. Is there water to the land? Is it stock fenced?

Woodland Planting - Long term land use change

Entry into Environmental agreement - who will be managing the land? how much management will it need.