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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 New legal ruling: VAT on farm rents
New legal ruling: VAT on farm rents PDF Print E-mail
Written by Alf Maxwell   
Friday, 20 February 2009 08:56

An unexpected effect of the Chancellor's reduction on VAT is the knock-on effect it has to farm rents.

Simon Pallett of Dreweatt Neate in Newbury points to the recent High Court case of Mason v Boscawen, which highlighted an unexpected effect of the Chancellor"s reduction in the rate of VAT from 17.5% to 15%.

The case considered whether VAT constituted "rent" for the purposes of a notice to pay given under the Agricultural Holdings Act 1986 (AHA). Mr Justice Lewison concluded that "rent" for these purposes was both the net rent and the VAT. Therefore a notice to pay which required the tenant to pay a sum of £x, where £x was made up of net rent and VAT, was valid.

Under the AHA when the rent changes the rent review clock re-starts, thus preventing the landlord or tenant triggering a rent review for a further three years. "It would seem from this decision that on AHA holdings, where the Landlord charges VAT on the rents, the three year clock was re-started in December 2008 and may well be re-started again in 2010 when VAT should revert to 17.5%," says Pallett. "This would effectively prevent a rent review until 2013. Different considerations may apply to Farm Business Tenancies.

"The Government has been encouraged to legislate to annul this unexpected consequence of the VAT change.

"Private landlords have rarely opted to tax for VAT purposes and, therefore, the ruling will have no impact to them but some major landowning institutions, such as The Crown Estate, have opted."

 
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