Budget 2024: Farmers need clarity and protection 

Tim Jones, Carter Jonas’ head of rural, said that, looking at the bigger picture, there is an opportunity to set out a Budget that delivers clarity for our landowning clients who have operated in a climate of significant uncertainty for many years.  
 
Carter Jonas’ Natural Capital Services Team is asking the government to commit to a programme of investment in natural infrastructure, such as natural flood management, that can be delivered by landowners. 
 
Mr Jones explained that landowners are in a strong position to help overcome many of the challenges with more frequent extreme weather events.  
 
“Further clarification on the tax treatment and incentives for property entered into nature markets such as biodiversity net gain is also much needed,” he added. 

Inheritance tax 

Landowners have long benefitted from agricultural property relief (APR) and business property relief (BPR) from inheritance tax.  
 
A reduction in, or removal of this relief, has the potential for a widespread, detrimental impact on farms and estates for a number of reasons.  
 
Mr Jones said: “This is an important mechanism for family farms to achieve a succession from one generation to the next, which helps sustain the rural economy. 

“It also affects how attractive land and rural property is to investors.”  
 
Reassurance is also sought over APR being applied to land used to create nature-based solutions. This would provide landowners with confidence to make long-term commitments, which is particularly important to encourage the transition to environmental-based schemes. 

National infrastructure

Carter Jonas expert added that landowners will be hoping for a Budget that includes measures to encourage investment and employment.  
 
Dedication to delivering sustainable, long-term funding plans would “help give certainty to major infrastructure projects”. 
 
“The government is pro-construction, and we can expect farmland to be impacted, whether it’s for general development or infrastructure projects. Landowners are often subject to upheaval and stress as a result of these schemes, and the process could be significantly improved,” Mr Jones added. 

Impact on sales and purchases 

Andrew Chandler, head of Rural Agency, said that alongside APR and BPR, business asset rollover relief from capital gains tax is a significant driver in the farmland market.  
 
“Buyers and sellers will be keeping a close eye on this and will be hoping to see it protected. 

“Reinvesting profits into new assets is essential for businesses to remain competitive, and any added tax burden would make this more challenging,” he added.  
 
Confidence in the sector would also be retained by a clear commitment to supporting  
agri-environment schemes and a plan to reallocate Defra’s £358m underspend over the past three years back into the sector. 

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