There is still speculation about what the new government will deliver for the agricultural industry. There are already pledges in place, with policies set to follow, but what are the anticipated implications for land managers?
Paul Robinson, D&R Director based in Cockermouth said “The government has pledged to improve food security and to ensure more food going into the public sector is locally sourced which is good news for farmers. They have also committed to renewable energy, which will create ‘energy crop’ opportunities for some and headaches for others. From income generation to taxation, it has never been more important to understand the implications for your business”.
Renewables – prospecting in northern England:
The promised renewables £5bn/year investment is already attracting onshore wind developers in the north of England. D&R is seeing speculative developers approaching landowners and managers ahead of any clear policy. Our advice is to speak to your agent and get specialist support at the outset. We have been working on behalf of clients across Scotland for many years and understand the complexities and opportunities landowners and land managers are likely to face.
Valuations for borrowers
Reduced interest rates are good news for landowners who need borrowing. D&R Surveyor Joe Bell said “With interest rates coming down, it makes borrowing cheaper and is creating more movement in the market. Banks still need valuations and the demand for these is increasing. We are seeing a mix of clients looking for new borrowing and those looking to consolidate several existing loans.”
The taxing issue
There is strong speculation around Labour policies on the questions of (APR) Agricultural Property Relief (which can currently help reduce or eliminate inheritance tax on farming and other qualifying business assets) and potential increases in capital gains tax relief.
Valuing your land
Accurate valuations of land and property are often infrequent and consequently can be out of date. Understanding your asset value has never been more important – especially if the new government amends taxation policies. For those looking at succession planning, moving property into trusts or looking to maximise tax benefits for inheritance or capital gains tax purposes, valuations are essential. Pre-empting a new government, D&R has already seen clients request inheritance tax valuations, something they anticipate will increase.
The property market
On balance, properties coming to market are receiving strong interest and achieving strong prices. For those considering selling in the short to medium term, it would be wise to act sooner rather than later as many anticipate tax changes later in the year or next spring. As well as reviewing APR, and capital gains tax, there may also be changes to stamp duty, which could affect those about to take advantage of the recent changes to Permitted Development Rights.
Permitted Development Rights (PDR’s).
In May, new guidelines were introduced to make it simpler and less costly to build or develop, with amendments to the criteria for conversion of existing agricultural buildings for homes or commercial use. It is worth consideration if you are looking to maximise the value of your property as it can generate rental income or capital to reinvest. It is important to note restrictions which preclude development in National Parks, so development in the Lake District will still be challenging.
Paul Robinson continued, “With so many competing land uses (in food production, environmental enhancement, forestry, carbon sequestration, energy production, recreation, tourism, and housing development), and now, a new government and new policies, getting the right specialists to support your business is crucial.”
For more information or an informal chat about making the most of your property assets, contact Paul Robinson on 01900 268 633 or email PR@drrural.co.uk
