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Index to Tax Planning for Farm and Land Diversification, 3rd Edition

This is the index to the Bloomsbury Professional book Tax Planning for Farm and Land Diversification, 3rd Edition. Chapter 1 and the table of contents are also available free of charge, as a sample of the book's contents.

Julie Butler

Index

[All references are to paragraph number]

Accounting standards
structure of business, and, 8.25
Accounting treatment
contract farming, and, 11.11
farm business tenancies, and, 11.16
generally, 1.22
'hobby' farming , and, 12.4
share farming, and, 11.6
Accumulation and maintenance trusts
generally, 17.4
Activity leisure pursuits
generally, 6.32
Administration and records
structure of business, and, 8.14
Advance clearance
artificial transactions in land, and 14.49
Adventure games
diversification, and, 1.9
generally, 6.32
Aggregates
diversification, and, 1.9
levy, 19.8
Agistment
letting activity, and, 15.31
Agri-environmental stewardship schemes
definition of 'farming', 1.3
generally, 2.23
Agricultural attractions
diversification, and, 1.9
generally, 6.31
Agricultural buildings
planning permission, and, 3.3
Agricultural buildings allowances (ABA)
generally, 4.3
plant and machinery, and, 7.12
risk of loss of tax relief, and, 1.2
Agricultural Holdings Act tenancies
wills, and, 18.15
Agricultural land
definition, 1.6
Agricultural property relief (APR)
agricultural occupation, 13.15
'agricultural property', 13.6
agricultural value
farmhouses, and, 4.32
generally, 13.2
application, 13.3
capital gains tax, and, 13.8
categories of property attracting relief
50%, at, 13.5
100%, at, 13.4
conservation schemes, and, 13.24
Earl of Balfour, 13.5013.52
failed PET, and, 13.1713.23
farm assets, and
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
generally, 5.6
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
Farmer (Farmer's Executors) v IRC, 13.2513.46
farmhouses, and
agricultural value, 4.32
Antrobus cases, 4.31
Arnander (McKenna) case, 4.394.41
Atkinson case, 4.42
'character appropriate', 4.36
commercial viability test, 4.23
death in hospital or nursing home, 4.35
Dixon case, 4.25
economic test, 4.24
farm business tenancies, 4.26
farmhouse held in limited company, 4.34
financial support test, 4.23
financial viability test, 4.24
Higginson case, 4.30
introduction, 4.22
local practice test, 4.23
occupation test, 4.23
partnerships, and, 4.37
primary character test, 4.23
risk of loss of tax relief, and, 1.2
Rosser case, 4.29
several farmhouses, 4.37
smallholdings, 4.25
Starke case, 4.28
structure of farming, and, 4.27
summary of problems, 4.38
tests for farmhouse, 4.23
working farmer provisions, 4.33
generally, 13.1
gifts with reservation of benefit, 13.14
interaction with APR, 13.1013.16
introduction, 4.1
loss to donor principle
farm assets, and, 5.56
generally, 13.16
lotting, 13.7
Marquess of Hertford (deceased), 13.4713.48
non-qualifying assets, 13.9
priority, 13.10
Prosser v IRC, 13.49
replacement property, 13.13
set-aside, and, 13.24
Agricultural quotas
structure of business, and, 8.24
Agriculture
definition, 1.6
Alternative crops
diversification, and, 1.9
income by concession, and, 1.7
Angora production
diversification, and, 1.9
Animals
See also Livestock
owners liability rules, 19.1
Annual accounting
value added tax, and, 9.7
Annual investment allowances
plant and machinery, and, 7.3
Ante-nuptial settlements
divorce, and, 16.18
Appropriation
trading stock, and, 7.31
Arable area payments scheme
generally, 1.20
single farm payment, and, 20.2
Arable farming
generally, 7.21
Area-based method
single payment scheme, and, 1.17
Artificial transactions in land
advance clearance procedures, 14.49
definition, 14.45
diversification into trade of property developer, 14.51
first intention date, 14.48
non-resident companies, 14.47
principal private residence exemption, and, 4.6
purchase by sitting tenant, 14.50
'slice of the action' schemes, 14.46
'Asset stripper'
generally, 10.12
introduction, 10.1
Associated companies
structure of business, and, 8.27
Averaging profits
generally, 1.14
risk of loss of tax relief, and, 1.2
Bankruptcy
divorce, and, 16.23
Barn conversions
principal private residence exemption, and, 4.20
Bed and breakfast
diversification, and, 1.9
generally, 6.16
letting activity, and, 15.20
value added tax, and, 9.30
Beef special premium
single farm payment, and, 20.2
Biofuels
arable farming, and, 7.21
diversification, and, 1.9
generally, 6.48
income by concession, and, 1.7
miscellaneous issues, 19.19
Boxes at events
value added tax, and, 9.34
Business asset taper relief
generally, 2.11
Business Economic Notes (BEN)
herd basis, 7.22
Business partnerships
divorce, and, 16.28
Business property relief
agricultural occupation, 13.15
caravan sites and parks, and, 6.22
claims, 13.11
conservation schemes, and, 13.24
failed PET, and, 13.1713.23
farm assets, and
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
generally, 5.25.4
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
farmhouse, and, 4.22
gifts with reservation of benefit, 13.14
interaction with APR, 13.1013.16
letting activity, and, 15.1615.17
loss to donor principle
farm assets, and, 5.56
generally, 13.16
replacement property, 13.13
set-aside, and, 13.24
Business structures
generally, 2.13
Camping pitches
value added tax, and, 9.31
Camping sites
diversification, and, 1.9
Capital allowances
caravan sites and parks, and, 6.21
letting activity, and, 15.11
plant and machinery, and
enhanced allowances, 7.6
first-year allowances, 7.5
generally, 7.4
planning, 7.18
structure of business, and, 8.26
working animals and production livestock, and, 7.25
Capital gains tax
contract farming, and, 11.12
disposals of property, and
farmland, and, 14.42
general, 14.514.15
hold-over relief, 14.2614.30
mineral royalties, 14.3214.36
part disposals, 14.3714.40
recent reforms, 14.214.4
retirement relief, 14.31
roll-over relief, 14.1614.25
divorce, and
deferred charge, 16.31
generally, 16.29
hold-over relief, 16.32
postponed interest, 16.31
tax indemnity, 16.33
transfer of business assets, 16.32
transfer of matrimonial home, 16.30
entrepreneurs' relief
generally, 14.4
qualifying business disposal, 14.1214.13
review of disposals, 14.10
farm business tenancies, and
introduction, 11.18
recent reforms, 11.22
hold-over relief
agricultural property, 14.29
assets used for the purpose of trade, 14.28
gift to family members, 14.26
qualifying assets, 14.2714.30
transfers by trustees, 14.30
mineral royalties
introduction, 14.32
sale of land, 14.33
treasury route, 14.3414.36
option agreements
business usage, 14.52
exercise of option, 14.54
grant of option, 14.53
timing, 14.52
principal private residence exemption
adjoining houses, 4.5
artificial transactions in land, 4.6
barn conversion, 4.20
beneficiaries, 4.15
capital loss, 4.17
curtilage, 4.7
election, 4.12
farm workers, 4.14
'garden', 4.84.11
house and garden sold separately, 4.19
introduction, 4.4
job-related accommodation, 4.13
partnerships, 4.15
period of occupation, 4.21
preservation of relief, 4.16
redundant buildings, 4.20
separate garden, 4.18
tenant farmers, 4.14
trusts, 4.15
reforms
disposals of property, and, 14.214.4
generally, 1.23
retirement relief, 14.31
roll-over relief
alternative land use, 14.16
commerciality test, 14.25
depreciating asset, into, 14.24
let property, 14.20
mixed use of farm assets, 14.22
partial business use of farm assets, 14.21
replacement of business assets, 14.17
requirements, 14.19
separate land and buildings, 14.18
use, 14.23
whole proceeds, 14.17
share farming, and, 11.7
tax reliefs, 1.13
trusts, and
continuance of trust, 17.12
creation of trust, 17.6
termination of trust, 17.14
woodland, and, 6.7
Capital goods scheme
value added tax, and, 9.41
Capital loss
principal private residence exemption, and, 4.17
Car boot sales
diversification, and, 1.9
generally, 6.33
Caravan pitches
value added tax, and, 9.31
Caravan sites and parks
business property relief, and, 6.22
capital allowances, 6.21
diversification, and, 1.9
generally, 6.19
income, 6.20
planning permission, and, 3.3
Cars
company supplied, 7.14
unincorporated farming business, in, 7.16
Cash accounting
value added tax, and, 9.7
Cashmere production
diversification, and, 1.9
Casual lettings
generally, 11.2
land, of, 11.31
Cessation of trade
plant and machinery, and
generally, 7.9
transfer of plant to new business, 7.10
stock valuation adjustments, and, 7.24
Chancel repairs
generally, 19.18
Change of use
buildings, 3.6
land, 3.5
Character appropriate
agricultural property relief, and, 4.36
Child tax credit
divorce, and, 16.26
Christmas trees
diversification, and, 1.9
farming activities, and, 1.4
generally, 6.5
income by concession, and, 1.7
Clay pigeon shooting
diversification, and, 1.9
planning permission, and, 3.3
Climate change levy
generally, 19.9
Commercial properties
value added tax, and
lettings, 9.27
sale, 9.26
Commercial shoots
action plan, 6.54
generally, 6.51
HMRC approach, 6.53
planning permission, and, 3.3
tax problems, 6.54
'true countryman', 6.52
Commercial viability test
agricultural property relief, and, 4.23
Common Agricultural Policy (CAP)
reform, 1.1
Companies Act requirements
structure of business, and, 8.5
Company cars
generally, 7.14
Company meetings
structure of business, and, 8.13
Compensation payments
value added tax, and, 9.5
Compulsory purchase
disposal of property, and, 14.57
'Concession income'
generally, 1.7
Confidentiality
divorce, and, 16.24
Conservation grants
generally, 2.7
Contract farming
accounts, 11.11
capital gains tax, 11.12
general concept, 11.10
inheritance tax, 11.12
need for agreements, 11.14
risks, 11.13
Contracting income
income by concession, and, 1.7
Corporation tax
structure of business, and
payments, 8.6
rates, 8.6
Cottages let rent free to farm workers
letting activity, and, 15.2115.24
Countryside access
generally, 1.24
Countryside attractions
diversification, and, 1.9
generally, 6.31
Crop rotation
generally, 7.21
Cross-compliance
single payment scheme, and, 1.17
Curry Report
single payment scheme, and, 1.17
Curtilage
principal private residence exemption, and, 4.7
Dairy farming
generally, 7.19
Decoupling
single payment scheme, and, 1.17
Deferred charge
capital gains tax, 16.31
generally, 16.15
Deposit of soil
farming activities, and, 1.4
generally, 6.23
Design
planning permission, and, 3.14
Directors' duties and responsibilities
structure of business, and, 8.12
Directors' meetings
structure of business, and, 8.13
Disabled persons' trusts
generally, 17.4
Disclosure of use of tax avoidance schemes (DOTAS)
generally, 19.3
Disposal of property
alternative land use, 14.14
artificial transactions in land
advance clearance procedures, 14.49
definition, 14.45
diversification into trade of property developer, 14.51
first intention date, 14.48
non-resident companies, 14.47
purchase by sitting tenant, 14.50
'slice of the action' schemes, 14.46
capital gains tax
farmland, and, 14.42
general, 14.514.15
hold-over relief, 14.2614.30
mineral royalties, 14.3214.36
part disposals, 14.3714.40
recent reforms, 14.214.4
retirement relief, 14.31
roll-over relief, 14.1614.25
compulsory purchase, 14.57
enterprise investment scheme deferral relief, 14.59
entrepreneurs' relief
generally, 14.4
qualifying business disposal, 14.1214.13
review of disposals, 14.10
farmland, and
artificial transactions in land, 14.4514.51
capital gains tax, 14.42
generally, 14.41
trading in land, 14.4314.44
gifts to family members, 14.63
HMRC approach to tax avoidance, 14.65
hold-over relief
agricultural property, 14.29
assets used for the purpose of trade, 14.28
gift to family members, 14.26
qualifying assets, 14.2714.30
transfers by trustees, 14.30
indexation allowance, and, 14.214.3
introduction, 14.1
mineral royalties
introduction, 14.32
sale of land, 14.33
treasury route, 14.3414.36
option agreements
business usage, 14.52
exercise of option, 14.54
grant of option, 14.53
timing, 14.52
overage
generally, 14.5
types, 14.6
part disposal rule, 14.3714.38
ransom strips, 14.6
'Red Book', 14.61
retired farm worker cottages, 14.60
retirement relief, 14.31
rights to future development value
generally, 14.5
types, 14.6
roll-over relief
alternative land use, 14.16
commerciality test, 14.25
depreciating asset, into, 14.24
let property, 14.20
mixed use of farm assets, 14.22
partial business use of farm assets, 14.21
replacement of business assets, 14.17
requirements, 14.19
separate land and buildings, 14.18
use, 14.23
whole proceeds, 14.17
sale of land to developer, 14.56
set-aside scheme, 14.66
shares in unquoted company, 14.11
small part disposal rule, 14.3914.40
taper relief, and, 14.214.3
tax avoidance, and, 14.65
tax date, 14.9
tenanted farmland, 14.15
tenanted land with development value, 14.58
timing, 14.8
trading in land, 14.4314.44
trading losses, 14.7
valuations, 14.61
'wholly' for the purpose of carrying on a trade, 14.11
Diversification
business plan, 19.25
categories, 19.21
customers, 19.23
definition
alternative land and building use, 1.9
generally, 1.8
effect on tax computation and accounts, 1.11
financial impact, 19.21
grant funding, 6.2
inheritance tax
See also Inheritance tax
farm assets, 5.15.56
farmhouses, 4.14.43
land quality, 1.19
opportunities
business risks, 19.24
generally, 1.16
planning permission, 3.4
reasons for, 19.20
resources, 19.22
specified activities, 6.16.56
tax and financial action plan, 19.26
tax reliefs, 1.13
types, 6.3
Divorce
ante-nuptial settlements, 16.18
bankruptcy, 16.23
business partnerships, 16.28
capital gains tax
deferred charge, 16.31
generally, 16.29
hold-over relief, 16.32
postponed interest, 16.31
tax indemnity, 16.33
transfer of busine3ss assets, 16.32
transfer of matrimonial home, 16.30
child tax credit, 16.26
confidentiality, 16.24
deferred charge, 16.15
division of assets
approach of courts, 16.316.4
McFarlane v McFarlane, 16.11
Miller v Miller, 16.11
post-McFarlane decisions, 16.11
post-Miller decisions, 16.11
post-White v White decisions, 16.10
s 25 MCA 1973, and, 16.316.4
White v White, 16.516.9
income tax, and
business partnerships, 16.28
child tax credit, 16.26
generally, 16.25
maintenance payments, 16.27
married couples' allowance, 16.26
working tax credit, 16.26
inheritance tax
Finance Act 2006, 16.35
generally, 16.34
inherited property, 16.16
introduction, 16.116.2
liquidity, 16.13
maintenance payments, 16.27
married couples' allowance, 16.26
postponed interest, 16.15
post-nuptial agreements, 16.21
post-nuptial settlements, 16.18
pre-nuptial agreements, 16.20
proceeds of crime, 16.22
property acquired prior to marriage, 16.16
protection of assets
bankruptcy, 16.23
post-nuptial agreements, 16.21
pre-nuptial agreements, 16.20
proceeds of crime, 16.22
trusts, 16.1716.19
tax implications
capital gains tax, 16.2916.33
Civil Partnership Act 2004, 16.36
Finance Act 2006, 16.35
income tax, 16.2516.28
inheritance tax, 16.34
trusts
ante-nuptial settlements, 16.18
generally, 16.17
other interests, 16.19
post-nuptial settlements, 16.18
valuations, 16.14
working tax credit, 16.26
Easement receipts
letting activity, and, 15.2815.29
Economic test
agricultural property relief, and, 4.24
Election
principal private residence exemption, and, 4.12
Energy crops
arable farming, and, 7.21
definition of 'farming', and, 1.3
diversification, and, 1.9
farming activities, and, 1.4
generally, 6.47
income by concession, and, 1.7
scheme, 2.22
Enhanced capital allowances
plant and machinery, and, 7.6
structure of business, and, 8.32
Enterprise investment schemes
deferral relief, 14.59
generally, 8.16
investment limits, 8.19
qualifying trades, 8.18
tax reliefs, 8.17
Enterprise zone allowances
plant and machinery, and, 7.17
Entitlement
single payment scheme, and, 1.17
Entrepreneurs' relief
background, 2.11
generally, 14.4
introduction, 2.12
qualifying business disposal, 14.1214.13
review of disposals, 14.10
structure of business, and, 8.33
Entry-level payments
single payment scheme, and, 1.17
Environmental stewardship
generally, 2.7
'reluctant' farmers, and, 10.18
Environmentally sensitive area scheme (ESAS)
generally, 2.18
Equestrian activities
value added tax, and, 9.37
Equestrian establishments
diversification, and, 1.9
livery yards, 6.246.25
polo, 6.286.29
riding schools, 6.26
tourism, trekking and holidays, 6.27
Equine stock
generally, 7.29
tax planning around values, 7.30
Exempt supplies
value added tax, and, 9.3
Extensification premium
single farm payment, and, 20.2
Family farming partnerships
background, 11.25
changes to business structure, 11.28
changes to tenancies, 11.30
comparison of tenancies and licences, 11.26
disadvantages of farm tenancies, 11.27
surrender of old tenancy, 11.29
Farm buildings
income by concession, and, 1.7
inheritance tax, and
agricultural property relief, 5.6
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
business property relief, 5.25.4
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
planning permission, and
generally, 3.6
introduction 3.3
risk of loss of tax relief, and, 1.2
Farm business tenancies (FBT)
accounts, 11.16
agricultural property relief, and, 4.26
agricultural purposes, 11.23
capital gains tax
introduction, 11.18
recent reforms, 11.22
distinction between farmer and landowner, 11.17
expenses, 11.16
general concept, 11.15
inheritance tax
double discount, 11.21
general position, 11.19
introduction, 11.18
period of ownership, 11.20
letting activity, and, 15.33
need for agreements, 11.24
Farm contractors
generally, 6.35
Farm land
artificial transactions in land
advance clearance procedures, 14.49
definition, 14.45
diversification into trade of property developer, 14.51
first intention date, 14.48
non-resident companies, 14.47
purchase by sitting tenant, 14.50
'slice of the action' schemes, 14.46
capital gains tax, 14.42
disposal, and
artificial transactions in land, 14.4514.51
capital gains tax, 14.42
generally, 14.41
trading in land, 14.4314.44
inheritance tax, and
agricultural property relief, 5.6
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
business property relief, 5.25.4
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
letting activity
additional services or facilities, 15.18
agistment, 15.31
bed and breakfast, 15.20
business property relief, 15.1615.17
capital allowances, 15.11
common law lettings, 15.32
farm business tenancies, 15.3315,36
farm worker cottages, 15.2115.24
furnished holiday lettings, 15.115.2
grant of easement receipts, 15.2815.29
grazing licences, 15.25
horse livery, 15.27
licences to horse owners, 15.26
'one estate' election, 15.14
pasturage, 15.26
quota leasing, 15.30
renewals basis, 15.1215.13
rent-a-room exemption, 15.15
rent free farm worker cottages, 15.21
separate businesses, and, 15.38
value added tax, 15.315.10
wayleaves, 15.2815.29
wear and tear allowance, 15.11
planning permission, and, 3.3
risk of loss of tax relief, and, 1.2
structure of business, and, 8.4
trading in land, 14.4314.44
Farm shops
farming activities, and, 1.4
generally, 6.33
planning permission, and, 3.3
Farm tax reliefs
risk of loss of tax relief, and, 1.2
Farm waste grant scheme (FWGS)
generally, 2.19
Farm workers
principal private residence exemption, and, 4.14
Farmer
single payment scheme, and, 1.17
Farmers' markets
diversification, and, 1.9
generally, 6.33
Farmgate
generally, 1.21
single payment scheme, and, 1.17
Farmhouses
agricultural buildings allowances, 4.3
agricultural property relief
agricultural value, 4.32
Antrobus cases, 4.31
Arnander (McKenna) case, 4.394.41
Atkinson case, 4.42
'character appropriate', 4.36
commercial viability test, 4.23
death in hospital or nursing home, 4.35
Dixon case, 4.25
economic test, 4.24
farm business tenancies, 4.26
farmhouse held in limited company, 4.34
financial support test, 4.23
financial viability test, 4.24
Higginson case, 4.30
introduction, 4.22
local practice test, 4.23
occupation test, 4.23
partnerships, and, 4.37
primary character test, 4.23
Rosser case, 4.29
several farmhouses, 4.37
smallholdings, 4.25
Starke case, 4.28
structure of farming, and, 4.27
summary of problems, 4.38
tests for farmhouse, 4.23
working farmer provisions, 4.33
business property relief, 4.22
capital gains tax
principal private residence exemption, 4.44.21
inheritance tax
agricultural property relief, 4.224.43
business property relief, 4.22
introduction, 4.14.2
introduction, 4.1
principal private residence exemption
adjoining houses, 4.5
artificial transactions in land, 4.6
barn conversion, 4.20
beneficiaries, 4.15
capital loss, 4.17
curtilage, 4.7
election, 4.12
farm workers, 4.14
'garden', 4.84.11
house and garden sold separately, 4.19
introduction, 4.4
job-related accommodation, 4.13
partnerships, 4.15
period of occupation, 4.21
preservation of relief, 4.16
redundant buildings, 4.20
separate garden, 4.18
tenant farmers, 4.14
trusts, 4.15
protection, 4.2
risk of loss of tax relief, and, 1.2
structure of business, and, 8.3
tax position, 4.14.43
Farming
definition
agriculture, and, 1.6
generally, 1.3
non-relevant activities, 1.5
relevant activities, 1.4
single farm payment, and, 20.19
trade, as, 1.10
Farming income
concession, by, 1.7
single farm payment, and, 20.7
Farming partnerships
wills, and, 18.16
Farmland
artificial transactions in land
advance clearance procedures, 14.49
definition, 14.45
diversification into trade of property developer, 14.51
first intention date, 14.48
non-resident companies, 14.47
purchase by sitting tenant, 14.50
'slice of the action' schemes, 14.46
capital gains tax, 14.42
disposal, and
artificial transactions in land, 14.4514.51
capital gains tax, 14.42
generally, 14.41
trading in land, 14.4314.44
inheritance tax, and
agricultural property relief, 5.6
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
business property relief, 5.25.4
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
letting activity
additional services or facilities, 15.18
agistment, 15.31
bed and breakfast, 15.20
business property relief, 15.1615.17
capital allowances, 15.11
common law lettings, 15.32
farm business tenancies, 15.3315,36
farm worker cottages, 15.2115.24
furnished holiday lettings, 15.115.2
grant of easement receipts, 15.2815.29
grazing licences, 15.25
horse livery, 15.27
licences to horse owners, 15.26
'one estate' election, 15.14
pasturage, 15.26
quota leasing, 15.30
renewals basis, 15.1215.13
rent-a-room exemption, 15.15
rent free farm worker cottages, 15.21
separate businesses, and, 15.38
value added tax, 15.315.10
wayleaves, 15.2815.29
wear and tear allowance, 15.11
planning permission, and, 3.3
risk of loss of tax relief, and, 1.2
structure of business, and, 8.4
trading in land, 14.4314.44
Financial discipline
single payment scheme, and, 1.17
Financial support test
agricultural property relief, and, 4.23
Financial viability test
agricultural property relief, and, 4.24
First-year allowances
plant and machinery, and, 7.5
First-year tax credits
structure of business, and, 8.32
Fiscal farming
'fiscal farmer', 1.12
generally, 1.3
single farm payment, and, 20.520.6
single payment scheme, and, 1.17
Fishing
diversification, and, 1.9
generally, 6.30
Fishing rights
value added tax, and, 9.32
Five-year loss rule
'hobby' farming , and, 12.2
risk of loss of tax relief, and, 1.2
Flat-rate farmers' schemes
value added tax, and, 9.8
Flat rate scheme for small businesses
value added tax, and, 9.10
Food chain reconnection
generally, 1.21
single payment scheme, and, 1.1
Food processing
diversification, and, 1.9
Forestry
diversification, and, 1.9
generally, 1.3
Fruit farms
farming activities, and, 1.4
generally, 19.5
Fruit orchards
generally, 6.46
Funeral wishes
wills, and, 18.6
Fungible assets
milk quotas, and, 7.27
Furnished holiday lettings
applicable rules, 15.34
business, 15.35
diversification, and, 1.9
generally, 15.34
'hobby' farming , and, 12.7
inheritance tax, and, 6.146.15
introduction, 6.13
HMRC guidance, 15.37
involvement with the tourist, 15.36
tax position, 6.13
Furnished lettings
background, 15.1
tax treatment, 15.2
Gaming rights
value added tax, and, 9.32
Garden
principal private residence exemption, and
development opportunities, 4.9
meaning, 4.8
permitted area, 4.10
'required', 4.11
sold separately from house, 4.19
Garden centres
generally, 6.33
Gifts to family members
disposal of property, and, 14.63
Golf
diversification, and, 1.9
generally, 6.32
Good agricultural and environmental condition
single payment scheme, and, 1.17
Grant of easement receipts
letting activity, and, 15.2815.29
Grants
generally, 1.18
tax position, 2.2
value added tax, and, 9.5
Grazing agreements
See also Grazing tenancies
generally, 11.35
investment business, as, 10.10
Grazing licences
letting activity, and, 15.25
Grazing rights
generally, 11.3
Grazing tenancies
agreements, 11.35
generally, 11.3211.34
paramount occupier, 11.33
tax planning, 11.36
trade, and, 11.32
'Green' allowances
enhanced capital allowances, 7.6
first year allowances, 7.5
generally, 19.2
Group relief
structure of business, and, 8.28
Guardians
wills, and, 18.4
Hedges
ownership and maintenance, 19.11
Herbage
generally, 10.7
Herd basis
generally, 7.217.22
Heritage property
breach of undertaking, 6.44
disposals, 6.43
generally, 6.39
qualifying property, 6.40
scope of relief, 6.41
undertaking, 6.42
Highway issues
planning permission, and, 3.15
History-based method
single payment scheme, and, 1.17
HMRC Rural Diversification Project
generally, 1.28
'Hobby' farming
accounts, 12.4
commercial advantage, 12.1
commerciality, and, 12.2
'five-year rule', 12.2
furnished holiday lettings, 12.7
introduction, 12.1
letting income, 12.6
loss reliefs, 12.5
losses
commerciality, and, 12.9
letting income, 12.6
reliefs, 12.5
rents received, 12.7
stud farming, 12.8
tax credits, and, 12.12
trading losses, 12.5
partnership loss manipulation, 12.13
purpose, 12.1
recreational farming, and, 12.3
rents received, 12.7
risk of loss of tax relief, and, 1.2
'sideways' loss claims
commerciality, and, 12.14
duality of purpose, 12.19
generally, 12.13
group loss relief, 12.16
HMRC Brief 18/07, 12.18
individuals with non-active trade, 12.17
losses relieved against gains, 12.15
personal benefit, 12.19
stud farming
combined with general farming, 12.10
generally, 12.8
tax computation, 12.4
tax credits, and, 12.12
trading income, 12.6
trading losses, 12.5
Hold-over relief
agricultural property, 14.29
assets used for the purpose of trade, 14.28
gift to family members, 14.26
qualifying assets, 14.2714.30
transfers by trustees, 14.30
Holiday lettings
diversification, and, 1.9
inheritance tax, 6.146.15
introduction, 6.13
tax position, 6.13
value added tax, and, 9.30
'Hope' value
generally, 5.33
valuations, 5.44
Horse liveries
diversification, and, 1.9
full livery, 6.25
generally, 6.24
letting activity, and, 15.27
VAT, 15.9
Horse tourism
generally, 6.27
Horticulture
generally, 1.3
planning permission, and, 3.3
Husbandry
definition, 1.3
income by concession, and, 1.7
Immediate post-death interests
generally, 17.4
wills, and, 18.11
Income tax
divorce, and
business partnerships, 16.28
child tax credit, 16.26
generally, 16.25
maintenance payments, 16.27
married couples' allowance, 16.26
working tax credit, 16.26
trusts, and
continuance of trust, 17.817.11
Incorporation of businesses
accounting standards, 8.25
administration and records, 8.14
advantages, 8.19
agricultural quotas, 8.24
associated companies, 8.27
capital allowances, 8.26
choice of company name, 8.11
Companies Act requirements, 8.5
company meetings, 8.13
conclusion, 8.34
corporation tax
payments, 8.6
rates, 8.6
directors' duties and responsibilities, 8.12
directors' meetings, 8.13
diversified activity, and, 8.2
enhanced capital allowances, 8.32
enterprise investment schemes, and
generally, 8.16
investment limits, 8.19
qualifying trades, 8.18
tax reliefs, 8.17
entrepreneurs' relief, 8.33
existing diversified business, 8.29
farm land, and, 8.4
farmhouse, and, 8.3
first-year tax credits, 8.32
grant of shares, 8.23
group relief, 8.28
income tax top rate of 50%, 8.8
introduction, 8.1
losses, 8.28
meetings, 8.13
notification of trading, 8.31
partnerships, and, 8.20
purpose, 8.9
real estate investment trusts, and, 8.15
records, 8.14
reorganisation of share capital, 8.22
research and development, 8.30
Indexation allowance
disposal of property, and, 14.214.3
Industrial buildings allowances
generally, 7.12
Inheritance tax
agricultural property relief
farm assets, 5.25.25
farmhouses, 4.224.43
generally, 13.113.52
agricultural property relief (farmhouses)
agricultural value, 4.32
Antrobus cases, 4.31
Arnander (McKenna) case, 4.394.41
Atkinson case, 4.42
'character appropriate', 4.36
commercial viability test, 4.23
death in hospital or nursing home, 4.35
Dixon case, 4.25
economic test, 4.24
farm business tenancies, 4.26
farmhouse held in limited company, 4.34
financial support test, 4.23
financial viability test, 4.24
Higginson case, 4.30
introduction, 4.22
local practice test, 4.23
occupation test, 4.23
partnerships, and, 4.37
primary character test, 4.23
Rosser case, 4.29
several farmhouses, 4.37
smallholdings, 4.25
Starke case, 4.28
structure of farming, and, 4.27
summary of problems, 4.38
tests for farmhouse, 4.23
working farmer provisions, 4.33
business property relief
farm assets, 5.25.25
farmhouses, 4.22
generally, 13.113.52
contract farming, and, 11.12
divorce, and
Finance Act 2006, 16.35
generally, 16.34
farm assets, and
agricultural property relief, 5.6
Balfour case, 5.55
barter, and, 5.505.52
binding contracts for sale, 5.8
business property relief, 5.25.4
cash flow management, 5.34
cash deposits, and, 5.395.40
cessation of trade with gifted assets, 5.16
clawback rules, 5.17
continuation of trading, 5.32
Dance case, 5.56
deathbed loan planning, 5.35
deeds of variation, 5.7
development value, 5.31
documentation, 5.53
farm cottages, 5.5
gifts with reservation of benefit, 5.11
held in limited company, 5.23
high capital employment, and, 5.21
'hope' value, 5.33
introduction, 5.1
letting agricultural land without vacant possession, 5.29
life assurance, and, 5.24
lifetime gift of assets, 5.9
loans to traders, 5.41
logistical issues, 5.42
'making or holding investments', 5.205.22
management of liabilities and deposits, 5.15
outbuildings, 5.49
pre-deathbed loan planning, 5.37
pre-owned assets charge, 5.27
provision for the future, 5.25
relocated borrowings, 5.38
'Red Book' value, 5.45
reduction of trading activity, 5.16
related property, 5.125.14
repair to property before and after death, 5.30
replacement of agricultural property with business property, 5.18
retired farm workers, 5.26
retirement of partners, and, 5.19
single unit of property, 5.10
substitution of probate value for lower figure, 5.54
surviving spouse exemption, 5.7
two-year test, 5.48
'unimpeded physical enjoyment', 5.28
vacant possession, 5.28
valuations, 5.435.48
'wholly and exclusively' linking with security, 5.36
farm business tenancies, and
double discount, 11.21
general position, 11.19
introduction, 11.18
period of ownership, 11.20
farmhouses, and
agricultural property relief, 4.224.43
business property relief, 4.22
introduction, 4.14.2
'hope' value
generally, 5.33
valuations, 5.44
plant and machinery, and, 7.8
share farming, and, 11.7
single farm payment, and, 20.10
trust deeds, and, 5.1
trusts, and
continuance of trust, 17.13
creation of trust, 17.7
termination of trust, 17.15
will trusts, and, 5.1
woodland, and, 6.10
Inherited property
divorce, and, 16.16
Insurance
wills, and, 18.21
Interest in possession trusts
generally, 17.4
Intestacy rules
wills, and, 18.3
Job-related accommodation
generally, 1.15
principal private residence exemption, and, 4.13
risk of loss of tax relief, and, 1.2
Land drainage
expenditure, 19.4
Land not in agricultural production
generally, 2.21
Landcare
generally, 1.26
Landfill
diversification, and, 1.9
tax, 19.10
Leasing quota
income by concession, and, 1.7
Legacies
wills, and, 18.5
Letting activity
additional services or facilities, 15.18
agistment, 15.31
bed and breakfast, 15.20
business property relief, 15.1615.17
capital allowances, 15.11
common law lettings, 15.32
cottages let rent free to farm workers, 15.2115.24
farm business tenancies, 15.33
furnished holiday lettings
applicable rules, 15.34
business, 15.35
generally, 15.34
HMRC guidance, 15.37
involvement with the tourist, 15.36
furnished lettings
background, 15.1
tax treatment, 15.2
grant of easement receipts, 15.2815.29
grazing licences, 15.25
horse liveries
generally, 15.27
VAT, 15.9
licences to horse owners, 15.26
'one estate' election, 15.14
pasturage, 15.26
quota leasing, 15.30
renewal basis
fixtures which are integral part of building, 15.13
general principle, 15.12
rent-a-room exemption, 15.15
separate businesses, and, 15.38
value added tax
actions by farmer, 15.7
clawback, 15.6
cottages held outside trading activity, 15.8
easement for smaller businesses, 15.5
generally, 15.3
horse liveries, 15.9
input tax restriction, 15.4
long-term plan, 15.10
payback, 15.6
wayleaves, 15.2815.29
wear and tear allowance, 15.11
Letting income
'hobby' farming , and, 12.6
Licences to horse owners
letting activity, and, 15.26
'Lifestyle' farmers
generally, 10.11
introduction, 10.1
'Lifestyle' farming
accounts, 12.4
commercial advantage, 12.1
commerciality, and, 12.2
'five-year rule', 12.2
furnished holiday lettings, 12.7
introduction, 12.1
letting income, 12.6
loss reliefs, 12.5
losses
commerciality, and, 12.9
letting income, 12.6
reliefs, 12.5
rents received, 12.7
stud farming, 12.8
tax credits, and, 12.12
trading losses, 12.5
partnership loss manipulation, 12.13
purpose, 12.1
recreational farming, and, 12.3
rents received, 12.7
risk of loss of tax relief, and, 1.2
'sideways' loss claims
commerciality, and, 12.14
duality of purpose, 12.19
generally, 12.13
group loss relief, 12.16
HMRC Brief 18/07, 12.18
individuals with non-active trade, 12.17
losses relieved against gains, 12.15
personal benefit, 12.19
stud farming
combined with general farming, 12.10
generally, 12.8
tax computation, 12.4
tax credits, and, 12.12
trading income, 12.6
trading losses, 12.5
Limited liability partnerships
generally, 2.14
Liquidity
divorce, and, 16.13
Listed dwellings
value added tax, and, 9.24
Livery yards
diversification, and, 1.9
full livery, 6.25
generally, 6.24
Livestock
dairy, 7.19
diversification, and, 1.9
farming activities, and, 1.4
owners liability rules, 19.1
pigs, 7.20
poultry, 7.20
sheep, 7.20
Livestock rearing
generally, 1.3
Living wills
wills, and, 18.20
Local practice test
agricultural property relief, and, 4.23
Loss reliefs
'hobby' farming , and, 12.5
Losses
'hobby' farming , and
commerciality, and, 12.9
letting income, 12.6
reliefs, 12.5
rents received, 12.7
stud farming, 12.8
tax credits, and, 12.12
trading losses, 12.5
structure of business, and, 8.28
Machinery
agricultural buildings allowances, 7.12
annual investment allowance, 7.3
capital allowances
enhanced allowances, 7.6
first-year allowances, 7.5
generally, 7.4
planning, 7.18
cars
company supplied, 7.14
unincorporated farming business, in, 7.16
cessation of trade, and
generally, 7.9
transfer of plant to new business, 7.10
company cars, 7.14
definition
advantages, 7.7
durability test, 7.2
function test, 7.2
generally, 7.1
enhanced capital allowances, 7.6
enterprise zone allowances, 7.17
financing, 7.13
first-year allowances, 7.5
industrial buildings allowances, 7.12
inheritance tax, for, 7.8
use by more than one business, 7.11
vans, 7.15
Main residence exemption
adjoining houses, 4.5
artificial transactions in land, 4.6
barn conversion, 4.20
beneficiaries, 4.15
capital loss, 4.17
curtilage, 4.7
election, 4.12
farm workers, 4.14
garden
development opportunities, 4.9
meaning, 4.8
permitted area, 4.10
'required', 4.11
house and garden sold separately, 4.19
introduction, 4.4
job-related accommodation, 4.13
partnerships, 4.15
period of occupation, 4.21
preservation of relief, 4.16
redundant buildings, 4.20
separate garden, 4.18
tenant farmers, 4.14
trusts, 4.15
Maintenance payments
divorce, and, 16.27
Market gardening
definition, 1.6
generally, 1.3
Married couples' allowance
divorce, and, 16.26
'Mars' adjustment
farming stock. and. 7.32
Meetings
structure of business, and, 8.13
Milk quotas
generally, 7.27
phasing out, 7.28
Mineral royalties
diversification, and, 1.9
generally, 6.37
introduction, 14.32
sale of land, 14.33
treasury route, 14.3414.36
Minimum wage
accommodation provided in return for work, 19.14
Mobile phone masts
diversification, and, 1.9
generally, 6.36
Modulation
single payment scheme, and, 1.17
Mohair production
diversification, and, 1.9
Mooring of vessels
value added tax, and, 9.35
Motor sports
diversification, and, 1.9
generally, 6.32
Music concerts
diversification, and, 1.9
Naked acres
single payment scheme, and, 1.17
National envelope
single payment scheme, and, 1.17
National minimum wage
accommodation provided in return for work, 19.14
National parkland
generally, 19.13
National reserve
single payment scheme, and, 1.17
Negative list crops
single payment scheme, and, 1.17
Nitrate vulnerable zones
generally, 2.20
Non-fiscal farmers
single payment scheme, and, 1.17
Non-resident companies
artificial transactions in land, and, 14.47
Notification of trading
structure of business, and, 8.31
Occupation test
agricultural property relief, and, 4.23
'One estate' election
letting activity, and, 15.14
Option agreements
business usage, 14.52
exercise of option, 14.54
grant of option, 14.53
timing, 14.52
Orchards
farming activities, and, 1.4
generally, 19.5
Organic entry-level stewardship (OELS)
generally, 2.17
Overage
generally, 14.5
types, 14.6
Parking vehicles
value added tax, and, 9.35
Part disposal rule
disposal of property, and, 14.3714.38
Partial decoupling
single payment scheme, and, 1.17
Partnerships
agricultural property relief, and, 4.37
'hobby' farming , and, 12.13
principal private residence exemption, and, 4.15
structure of business, and, 8.20
Pasturage
letting activity, and, 15.26
Permitted development rights
planning permission, and, 3.3
Personal possessions
wills, and, 18.7
Pick your own
generally, 6.33
planning permission, and, 3.3
Pig farming
generally, 7.20
Planning obligations
planning permission, and, 3.16
Planning permission
applications, 3.9
buildings, 3.6
change of use
buildings, 3.6
land, 3.5
consultation, 3.13
current policies
generally, 3.7
national guidance, 3.8
design, 3.14
diversification, and, 3.4
feasibility, and, 3.2
generally, 2.9
highway issues, 3.15
introduction, 3.1
lobbying, 3.13
need, 3.2
negotiation, 3.13
new structures and buildings, 3.6
optimisation, 3.10
permitted development rights, 3.3
planning and developmental appraisal, 3.11
planning obligations, 3.16
surveys, 3.12
tax planning, and, 2.10
transport issues, 3.15
Plant and machinery
agricultural buildings allowances, 7.12
annual investment allowance, 7.3
capital allowances
enhanced allowances, 7.6
first-year allowances, 7.5
generally, 7.4
planning, 7.18
cars
company supplied, 7.14
unincorporated farming business, in, 7.16
cessation of trade, and
generally, 7.9
transfer of plant to new business, 7.10
company cars, 7.14
definition
advantages, 7.7
durability test, 7.2
function test, 7.2
generally, 7.1
enhanced capital allowances, 7.6
enterprise zone allowances, 7.17
financing, 7.13
first-year allowances, 7.5
industrial buildings allowances, 7.12
inheritance tax, for, 7.8
use by more than one business, 7.11
vans, 7.15
Plant hire
diversification, and, 1.9
Polo
farms, 6.29
generally, 6.28
Postponed interest
capital gains tax, 16.31
generally, 16.15
Post-nuptial agreements
divorce, and, 16.21
Post-nuptial settlements
divorce, and, 16.18
Poultry farming
generally, 7.20
Powers of attorney
wills, and, 18.19
Pre-nuptial agreements
divorce, and, 16.20
Primary character test
agricultural property relief, and, 4.23
Principal private residence exemption
adjoining houses, 4.5
artificial transactions in land, 4.6
barn conversion, 4.20
beneficiaries, 4.15
capital loss, 4.17
curtilage, 4.7
election, 4.12
farm workers, 4.14
garden
development opportunities, 4.9
meaning, 4.8
permitted area, 4.10
'required', 4.11
house and garden sold separately, 4.19
introduction, 4.4
job-related accommodation, 4.13
partnerships, 4.15
period of occupation, 4.21
preservation of relief, 4.16
redundant buildings, 4.20
separate garden, 4.18
tenant farmers, 4.14
trusts, 4.15
Proceeds of crime
divorce, and, 16.22
Processing and marketing grant scheme (PMG)
generally, 2.5
Production livestock
capital allowances, and, 7.25
Property development
diversification, and, 1.9
generally, 6.38
Quotas
generally, 7.26
letting activity, and, 15.30
milk, 7.27
phasing out, 7.28
Racehorse owners' scheme
value added tax, and, 9.9
Ransom strips
disposal of property, and, 14.6
Real estate investment trusts
structure of business, and, 8.15
Records
structure of business, and, 8.14
Recreational farming
'hobby' farming, and, 12.3
'Red Book'
disposal of property, and, 14.61
inheritance tax, and, 5.45
Redundant buildings
principal private residence exemption, and, 4.20
Relevant property trusts
generally, 17.4
'Reluctant' farmers
'business', 10.9
diversified landowner, and, 10.4
environmental stewardship, and, 10.18
farm practitioners, and, 10.5
grazing agreements, 10.10
introduction, 10.1
maximisation of tax reliefs, 10.2
right of herbage, 10.7
rural diversification initiatives, and, 10.18
self-employment, 10.19
sheltering development profits
farmers trading in land, 10.16
generally, 10.14
let land, in, 10.15
stamp duty land tax, 10.1
traditional farming, and, 10.3
vacant possession, 10.6
Renewal basis
letting activity, and
fixtures which are integral part of building, 15.13
general principle, 15.12
Renewable energy
generally, 6.49
planning permission, and, 3.3
Renovation of dwellings
value added tax, and, 9.20
Rent-a-room exemption
letting activity, and, 15.15
Rent free cottages let to farm workers
letting activity, and, 15.2115.24
Rental income
income by concession, and, 1.7
Rents received
'hobby' farming, and, 12.7
Reorganisation of share capital
structure of business, and, 8.22
Research and development
generally, 2.15
structure of business, and, 8.30
Residential conversions
value added tax, and
generally, 9.21
houses in multiple occupancy, 9.22
Residential properties
value added tax, and
lettings, 9.29
sale, 9.28
Residuary estate
wills, and, 18.1018.12
Restaurants
generally, 6.33
Retired farm worker cottages
disposal of property, and, 14.60
Retirement relief
disposal of property, and, 14.31
Riding holidays
generally, 6.27
Riding schools
diversification, and, 1.9
generally, 6.26
Right of herbage
generally, 10.7
Rights to future development value
generally, 14.5
types, 14.6
Roll-over relief
alternative land use, 14.16
commerciality test, 14.25
depreciating asset, into, 14.24
let property, 14.20
mixed use of farm assets, 14.22
partial business use of farm assets, 14.21
replacement of business assets, 14.17
requirements, 14.19
separate land and buildings, 14.18
use, 14.23
whole proceeds, 14.17
Rural Diversification Project
generally, 1.28
Scrubland
cost of reclaiming, 19.6
Seats at events
value added tax, and, 9.34
Self-employment
'reluctant' farmers, and, 10.18
Set-aside
disposal of property, and, 14.66
farming activities, and, 1.4
generally, 2.4
single farm payment, and, 20.15
Severely disadvantaged areas
entitlements, 2.3
single payment scheme, and, 1.17
Share farming
accounts, 11.6
arrangements, 11.5
capital gains tax, 11.7
definition of 'farming', and, 1.4
general concept, 11.4
inheritance tax, 11.7
need for agreements, 11.9
risks, 11.8
tax planning, 11.7
tax position, 11.6
Shares in unquoted company
disposal of property, and, 14.11
Sheep annual premium
single farm payment, and, 20.2
Sheep farming
generally, 7.20
Sheltering development profits
farmers trading in land, 10.16
generally, 10.14
let land, in, 10.15
stamp duty land tax, 10.17
Shooting
action plan, 6.54
generally, 6.51
HMRC approach, 6.53
planning permission, and, 3.3
tax problems, 6.54
'true countryman', 6.52
Short rotation coppice
definition, 1.3
farming activities, and, 1.4
generally, 6.8
'Sideways' loss claims
commerciality, and, 12.14
duality of purpose, 12.19
generally, 12.13
group loss relief, 12.16
HMRC Brief 18/07, 12.18
individuals with non-active trade, 12.17
losses relieved against gains, 12.15
personal benefit, 12.19
Single farm payment
abandoned schemes, and, 20.2
accounting treatment, 20.8
annuity, 20.18
'area based' method, 20.3
cessation of trade, and, 20.13
conclusion, 20.20
cross-compliance conditions, 20.17
entitlement
inheritance tax, 20.10
introduction, 20.9
VAT, 20.11
'farming', 20.19
farming income, 20.7
fiscal farmer, and, 20.520.6
generally, 1.17
'history based' method, 20.3
inheritance tax, 20.10
introduction, 1.1, 20.1
national envelope. 20.16
non-fiscal farmer, and, 20.5
set-aside, 20.15
tax marriage between land and trading vehicle, 20.12
transitional method, 20.4
VAT, 20.11
wills, and, 18.18, 20.14
Single payment entitlements
generally, 2.3
Single farm payment scheme
See Single farm payment
Sitting tenant
artificial transactions in land, and, 14.50
Size of holdings
generally, 1.27
Slaughter premium
single farm payment, and, 20.2
'Slice of the action' schemes
artificial transactions in land, and, 14.46
Small and medium-sized enterprises (SMEs)
generally, 2.16
Small part disposal rule
disposal of property, and, 14.3914.40
Smallholdings
agricultural property relief, and, 4.25
Soil deposits
farming activities, and, 1.4
generally, 6.23
Soil quality
generally, 1.25
Sponsorship
generally, 19.1519.17
Sports facilities letting
value added tax, and, 9.33
Stamp duty land tax (SDLT)
generally, 10.17
Stewardship
generally, 2.7
Stock valuation adjustments
generally, 7.24
Storage of vehicles
value added tax, and, 9.35
Structure of businesses
accounting standards, 8.25
administration and records, 8.14
advantages, 8.19
agricultural quotas, 8.24
associated companies, 8.27
capital allowances, 8.26
choice of company name, 8.11
Companies Act requirements, 8.5
company meetings, 8.13
conclusion, 8.34
corporation tax
payments, 8.6
rates, 8.6
directors' duties and responsibilities, 8.12
directors' meetings, 8.13
diversified activity, and, 8.2
enhanced capital allowances, 8.32
enterprise investment schemes, and
generally, 8.16
investment limits, 8.19
qualifying trades, 8.18
tax reliefs, 8.17
entrepreneurs' relief, 8.33
existing diversified business, 8.29
farm land, and, 8.4
farmhouse, and, 8.3
first-year tax credits, 8.32
grant of shares, 8.23
group relief, 8.28
income tax top rate of 50%, 8.8
introduction, 8.1
losses, 8.28
meetings, 8.13
notification of trading, 8.31
partnerships, and, 8.20
purpose, 8.9
real estate investment trusts, and, 8.15
records, 8.14
reorganisation of share capital, 8.22
research and development, 8.30
Stud farms
commerciality, 6.18
farming activities, and, 1.4
generally, 6.17
'hobby' farming, and
combined with general farming, 12.10
generally, 12.8
tax planning, 7.30
valuation, 7.29
Subsidies
accounting, 2.25
generally, 1.18
recording, 2.25
Suckler cow premium
single farm payment, and, 20.2
Surveys
planning permission, and, 3.12
Taper relief
disposal of property, and, 14.214.3
Tax avoidance
disposal of property, and, 14.65
Tax credits
'hobby' farming, and, 12.12
Tenant farmers
principal private residence exemption, and, 4.14
Tenanted farmland
disposal of property, and, 14.15
Tenanted land with development value
disposal of property, and, 14.58
Timber
See also Woodland
generally, 6.5
Timber merchants
generally, 6.5
Timber rights
value added tax, and, 9.36
Trading in land
disposal of property, and, 14.4314.44
Trading income
'hobby' farming, and, 12.6
Trading losses
disposal of property, and, 14.7
'hobby' farming, and, 12.5
Trading stock
appropriation, 7.31
'Mars adjustment', 7.32
Transfer of going concern
value added tax, and
auctions, and, 9.44
generally, 9.42
opted land, 9.43
Transitional arrangement
single payment scheme, and, 1.17
Transitional serial interests
generally, 17.4
Transport issues
planning permission, and, 3.15
Treasure seeker licences
generally, 19.12
income by concession, and, 1.7
Trekking
generally, 6.27
Trust deeds
farm assets, and, 5.1
Trusts
accumulation and maintenance trusts, 17.4
capital gains tax
continuance of trust, 17.12
creation of trust, 17.6
termination of trust, 17.14
creation, 17.2
disabled persons' trusts, 17.4
divorce, and
ante-nuptial settlements, 16.18
generally, 16.17
other interests, 16.19
post-nuptial settlements, 16.18
immediate post-death interests, 17.4
income tax
continuance of trust, 17.817.11
inheritance tax
continuance of trust, 17.13
creation of trust, 17.7
termination of trust, 17.15
interest in possession trusts, 17.4
introduction, 17.1
principal private residence exemption, and, 4.15
relevant property trusts, 17.4
tax treatment
continuance of trust, 17.817.13
creation of trust, 17.617.7
introduction, 17.5
termination of trust, 17.1417.15
'three certainties', 17.2
transitional serial interests, 17.4
trustees, 17.3
types, 17.4
uses, 17.16
Turf stripping and sales
farming activities, and, 1.4
generally, 6.23
planning permission, and, 3.3
Urban regeneration schemes
value added tax, and, 9.19
Vacant possession
generally, 10.6
Valuations
disposal of property, and, 14.61
divorce, and, 16.14
Value added tax (VAT)
annual accounting, 9.7
basic principles, 9.3
bed and breakfast accommodation, 9.30
boxes at events, 9.34
camping pitches, 9.31
capital goods scheme, 9.41
caravan pitches, 9.31
cash accounting, 9.7
commercial properties
lettings, 9.27
sale, 9.26
compensation payments, 9.5
equestrian activities, 9.37
exempt supplies, 9.3
fishing rights, 9.32
flat-rate farmers' schemes, 9.8
flat rate scheme for small businesses, 9.10
gaming rights, 9.32
grants, 9.5
holiday accommodation, 9.30
introduction, 9.2
land and property
diversification activities, 9.259.37
introduction, 9.11
option to tax, 9.129.18
renovation of dwellings, 9.20
residential conversions, 9.219.22
urban regeneration schemes, 9.19
zero-rating, 9.23
letting activity, and
actions by farmer, 15.7
clawback, 15.6
cottages held outside trading activity, 15.8
easement for smaller businesses, 15.5
generally, 15.3
horse liveries, 15.9
input tax restriction, 15.4
long-term plan, 15.10
payback, 15.6
listed dwellings, 9.24
mooring of vessels, 9.35
option to tax land and buildings
introduction, 9.12
need, 9.17
permission, 9.16
procedure, 9.14
purpose, 9.18
relevant businesses, 9.13
validity, 9.15
overview, 9.1
parking vehicles, 9.35
partial exemption, 9.389.40
racehorse owners' scheme, 9.9
rates, 9.3
reduced rate
generally, 9.3
renovation of dwellings, 9.20
residential conversions, 9.219.22
urban regeneration schemes, 9.19
registration, 9.4
renovation of dwellings, 9.20
residential conversions
generally, 9.21
houses in multiple occupancy, 9.22
residential properties
lettings, 9.29
sale, 9.28
sale of business
auctions, and, 9.44
generally, 9.42
opted land, 9.43
seats at events, 9.34
single farm payment, and, 20.11
special schemes, 9.6
sports facilities letting, 9.33
standard rate, 9.3
storage of vehicles, 9.35
timber rights, 9.36
transfer of going concern
auctions, and, 9.44
generally, 9.42
opted land, 9.43
urban regeneration schemes, 9.19
zero-rating
extension, 9.23
introduction, 9.3
listed dwellings, 9.24
Vans
generally, 7.15
Vineyards
diversification, and, 1.9
generally, 6.34
Vocational training scheme (VTS)
generally, 2.6
Water sports
diversification, and, 1.9
generally, 6.32
Wayleaves
income by concession, and, 1.7
letting activity, and, 15.2815.29
Wear and tear allowance
letting activity, and, 15.11
'Wholly' for the purpose of carrying on a trade
disposal of property, and, 14.11
Will trusts
farm assets, and, 5.1
Wills
Agricultural Holdings Act tenancies, 18.15
carrying on business of farming, 18.17
exemptions and reliefs, 18.8
farming partnerships, 18.16
funeral wishes, 18.6
guardians, 18.4
handing on assets tax free, 18.12
immediate post-death interests trusts, 18.11
insurance, 18.21
intestacy rules, 18.3
introduction, 18.118.2
legacies, 18.5
living wills, 18.20
mitigation of tax, 18.14
non-testamentary documents, 18.19
personal possessions, 18.7
powers of attorney, 18.19
residuary estate, 18.1018.12
single farm payments, 18.18, 20.14
tax-efficient wills, 18.918.14
Wind farms
generally, 6.49
planning permission, and, 3.3
tax planning, 6.50
Woodland
activities going beyond occupation, 6.45
ancillary woodlands, 6.11
capital gains tax, 6.7
Christmas trees, 6.5
commercial considerations, 6.9
diversification, and, 1.9
generally, 1.3
grant schemes, and, 2.24
inheritance tax deferral relief, 6.10
introduction, 6.4
occupation, 6.6
sale of timber, 6.5
short rotation coppice, 6.8
tax planning, 6.12
timber merchants, 6.5
Work clothes
generally, 19.7
Working animals
capital allowances, and, 7.25
Working farmer
agricultural property relief, and, 4.33
Working tax credit
divorce, and, 16.26
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