Field Talk

Welcome to Field Talk, our agricultural law newsletter

The team here at Clarke Willmott is busy finalising transactions in advance of the fast approaching 2024 Autumn Budget.

We anticipate this may be a balancing act—providing fiscal tightening alongside strategic investments in environmental sustainability, rural communities, and labour shortages. In short, the UK agricultural sector could be in for a period of adjustment, particularly in light of Labour’s policy priorities.

Changes to the tax landscape, including potential reforms to capital gains tax and inheritance tax, could have far-reaching implications for farmers and landowners. Agricultural Property Relief (APR) and Business Property Relief (BPR), both crucial tools for minimising tax liabilities on inherited farmland, are also under scrutiny. Any modifications to these reliefs could potentially place greater financial burdens on farmers, landowners and agricultural businesses, especially those with significant holdings. These shifts may affect the way agricultural properties are valued and passed down through generations, making succession planning a key concern for those managing family farms. This might drive further restructuring and prompt farmers to explore different business models.

Environmental sustainability is also expected to be a central focus in this Budget. Labour’s emphasis on green farming initiatives could lead to increased government funding for carbon reduction strategies and biodiversity projects. These measures, while environmentally progressive, will require careful implementation to ensure food production remains at the heart of British farming, whilst making the most of new grants and subsidies aimed at bolstering small and medium-sized agricultural businesses.

As ever, we will be carefully assessing how these changes affect the day-to-day operations and long-term planning of all our farming and landowning clients so we can continue to provide the best strategic advice.

We hope you enjoy reading this edition of Field Talk, and as ever please do not hesitate to get in touch to see if we can help you or your business.

Esther Woolford

Head of Agriculture Sector Team