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

[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, 13.50–13.52

failed PET, and, 13.17–13.23

farm assets, and

Balfour case, 5.55

barter, and, 5.50–5.52

binding contracts for sale, 5.8

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'wholly and exclusively' linking with security, 5.36

Farmer (Farmer's Executors) v IRC, 13.25–13.46

farmhouses, and

agricultural value, 4.32

Antrobus cases, 4.31

Arnander (McKenna) case, 4.39–4.41

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, 13.10–13.16

introduction, 4.1

loss to donor principle

farm assets, and, 5.56

generally, 13.16

lotting, 13.7

Marquess of Hertford (deceased), 13.47–13.48

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, 13.17–13.23

farm assets, and

Balfour case, 5.55

barter, and, 5.50–5.52

binding contracts for sale, 5.8

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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, 5.2–5.4

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'wholly and exclusively' linking with security, 5.36

farmhouse, and, 4.22

gifts with reservation of benefit, 13.14

interaction with APR, 13.10–13.16

letting activity, and, 15.16–15.17

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, 14.5–14.15

hold-over relief, 14.26–14.30

mineral royalties, 14.32–14.36

part disposals, 14.37–14.40

recent reforms, 14.2–14.4

retirement relief, 14.31

roll-over relief, 14.16–14.25

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, 14.12–14.13

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, 14.27–14.30

transfers by trustees, 14.30

mineral royalties

introduction, 14.32

sale of land, 14.33

treasury route, 14.34–14.36

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', 4.8–4.11

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

reforms

disposals of property, and, 14.2–14.4

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, 15.21–15.24

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, 14.5–14.15

hold-over relief, 14.26–14.30

mineral royalties, 14.32–14.36

part disposals, 14.37–14.40

recent reforms, 14.2–14.4

retirement relief, 14.31

roll-over relief, 14.16–14.25

compulsory purchase, 14.57

enterprise investment scheme deferral relief, 14.59

entrepreneurs' relief

generally, 14.4

qualifying business disposal, 14.12–14.13

review of disposals, 14.10

farmland, and

artificial transactions in land, 14.45–14.51

capital gains tax, 14.42

generally, 14.41

trading in land, 14.43–14.44

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, 14.27–14.30

transfers by trustees, 14.30

indexation allowance, and, 14.2–14.3

introduction, 14.1

mineral royalties

introduction, 14.32

sale of land, 14.33

treasury route, 14.34–14.36

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, 14.37–14.38

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, 14.39–14.40

taper relief, and, 14.2–14.3

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, 14.43–14.44

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, 5.1–5.56

farmhouses, 4.1–4.43

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, 6.1–6.56

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, 16.3–16.4

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, 16.3–16.4

White v White, 16.5–16.9

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, 16.1–16.2

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, 16.17–16.19

tax implications

capital gains tax, 16.29–16.33

Civil Partnership Act 2004, 16.36

Finance Act 2006, 16.35

income tax, 16.25–16.28

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, 15.28–15.29

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, 14.12–14.13

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, 6.24–6.25

polo, 6.28–6.29

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, 5.50–5.52

binding contracts for sale, 5.8

business property relief, 5.2–5.4

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'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, 14.45–14.51

capital gains tax, 14.42

generally, 14.41

trading in land, 14.43–14.44

inheritance tax, and

agricultural property relief, 5.6

Balfour case, 5.55

barter, and, 5.50–5.52

binding contracts for sale, 5.8

business property relief, 5.2–5.4

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'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, 15.16–15.17

capital allowances, 15.11

common law lettings, 15.32

farm business tenancies, 15.33–15,36

farm worker cottages, 15.21–15.24

furnished holiday lettings, 15.1–15.2

grant of easement receipts, 15.28–15.29

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, 15.12–15.13

rent-a-room exemption, 15.15

rent free farm worker cottages, 15.21

separate businesses, and, 15.38

value added tax, 15.3–15.10

wayleaves, 15.28–15.29

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, 14.43–14.44

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, 4.39–4.41

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, 4.4–4.21

inheritance tax

agricultural property relief, 4.22–4.43

business property relief, 4.22

introduction, 4.1–4.2

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', 4.8–4.11

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

protection, 4.2

risk of loss of tax relief, and, 1.2

structure of business, and, 8.3

tax position, 4.1–4.43

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, 14.45–14.51

capital gains tax, 14.42

generally, 14.41

trading in land, 14.43–14.44

inheritance tax, and

agricultural property relief, 5.6

Balfour case, 5.55

barter, and, 5.50–5.52

binding contracts for sale, 5.8

business property relief, 5.2–5.4

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'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, 15.16–15.17

capital allowances, 15.11

common law lettings, 15.32

farm business tenancies, 15.33–15,36

farm worker cottages, 15.21–15.24

furnished holiday lettings, 15.1–15.2

grant of easement receipts, 15.28–15.29

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, 15.12–15.13

rent-a-room exemption, 15.15

rent free farm worker cottages, 15.21

separate businesses, and, 15.38

value added tax, 15.3–15.10

wayleaves, 15.28–15.29

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, 14.43–14.44

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, 20.5–20.6

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, 6.14–6.15

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, 15.28–15.29

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, 11.32–11.34

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, 7.21–7.22

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, 14.27–14.30

transfers by trustees, 14.30

Holiday lettings

diversification, and, 1.9

inheritance tax, 6.14–6.15

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, 17.8–17.11

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, 14.2–14.3

Industrial buildings allowances

generally, 7.12

Inheritance tax

agricultural property relief

farm assets, 5.2–5.25

farmhouses, 4.22–4.43

generally, 13.1–13.52

agricultural property relief (farmhouses)

agricultural value, 4.32

Antrobus cases, 4.31

Arnander (McKenna) case, 4.39–4.41

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, 5.2–5.25

farmhouses, 4.22

generally, 13.1–13.52

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, 5.50–5.52

binding contracts for sale, 5.8

business property relief, 5.2–5.4

cash flow management, 5.34

cash deposits, and, 5.39–5.40

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', 5.20–5.22

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, 5.12–5.14

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, 5.43–5.48

'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, 4.22–4.43

business property relief, 4.22

introduction, 4.1–4.2

'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, 15.16–15.17

capital allowances, 15.11

common law lettings, 15.32

cottages let rent free to farm workers, 15.21–15.24

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, 15.28–15.29

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, 15.28–15.29

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, 14.34–14.36

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, 14.37–14.38

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, 15.21–15.24

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, 18.10–18.12

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, 20.5–20.6

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, 14.39–14.40

Smallholdings

agricultural property relief, and, 4.25

Soil deposits

farming activities, and, 1.4

generally, 6.23

Soil quality

generally, 1.25

Sponsorship

generally, 19.15–19.17

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, 14.2–14.3

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, 14.43–14.44

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, 17.8–17.11

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, 17.8–17.13

creation of trust, 17.6–17.7

introduction, 17.5

termination of trust, 17.14–17.15

'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, 9.25–9.37

introduction, 9.11

option to tax, 9.12–9.18

renovation of dwellings, 9.20

residential conversions, 9.21–9.22

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, 9.38–9.40

racehorse owners' scheme, 9.9

rates, 9.3

reduced rate

generally, 9.3

renovation of dwellings, 9.20

residential conversions, 9.21–9.22

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, 15.28–15.29

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, 18.1–18.2

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, 18.10–18.12

single farm payments, 18.18, 20.14

tax-efficient wills, 18.9–18.14

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