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FC Wales smooths passage to important woodland

With its fascinating historical features, enchanting scenery and strong links to the end of the last major ice age, i Parkwood on the Gower is a popular tourist location. Forestry Commission Wales has stepped in to ensure a smoother passage into this environmental jewel after the Welsh Government woodland became the victim of its own alluring beauty. The road allowing access to the site of special scientific interest (SSSI) was showing signs of serious wear and tear, with badly pot-holed areas testifying to Parkwood’s popularity.

 
Saffery Champness comment on CAP Reform announcement

Commenting on the announcement on CAP Reform by EU Farm Minister, Dacian Ciolos, Andrew Arnott, a partner of  Saffery Champness Landed Estates & Rural Business Group says: “There was not much in the announcement that had not already been leaked. However, it confirms the intention to distribute subsidies more evenly by way of a cap on payments to farmers at 300,000 euros (£261,240) per year.  A progressive levy, to be applied on all payments exceeding 150,000 euros (£130,620), was also announced as a proposal. Assuming that the proposals will be approved by both the EU parliament and all member states, this will be bad news for many large arable farmers and some medium scale farming businesses, including those in the uplands.It remains to be seen whether the ‘sustainable and inclusive growth’ for European agriculture can really be achieved through these proposals.  I think they could, as they stand, have the opposite effect, acting as a disincentive to invest for farm businesses that are highly-mechanised with lower staffing levels”.

 
Leaked proposals for the reform of CAP entitlements

News has recently been leaked from the European Commission that farmers who claim more than €150,000 from the direct support element of the CAP (Pillar1), will see their entitlement payments progressively capped.  Commenting on the leaked proposals Mike Harrison, a partner of Saffery Champness Landed Estates & Rural Business Group, says: “There is a strongly worded proposal for progressive cuts in the entitlement payments above €150,000 ( £127,000) with a cap of €300,000 (£255,000)”.   Whilst the new regulations will apparently incorporate an allowance which reflects the farm’s wages bill, which is welcome news and should mean that both larger and smaller farms are treated equally, there will be a discrimination for those using external contractors

 

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Home Legal update Inheritance tax and farmland
Inheritance tax and farmland PDF Print E-mail
Written by Charlie Jacoby   
Tuesday, 10 February 2009 13:06

In 2002 a farmer transferred some farmland, which had development value, to the trustees of a family settlement, according to the NFU.

An exemption from Inheritance Tax was claimed on the transfer on the basis that the transfer was one of business property and hence covered by the business property relief exemption.

The Revenue then issued a ruling that 'none of the value transferred was attributable to the value of relevant business property'. The trustees appealed.

The Special Commissioner allowed the appeal, despite the fact that Inheritance Tax text books had for some years suggested that the transfer of business assets (as distinct from the transfer of a business itself) would not qualify for relief.

The High Court has now upheld the Special Commissioner's decision in the taxpayer's favour. This decision will be naturally be welcomed by many farmers who hold farmland with development value. It remains to be seen however if the Revenue will appeal the decision to the Court of Appeal.

HMRC v Nelson Dance Family Settlement Trustees, Ch D [2009] EWHC 71 (Ch).

 
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