1. Expansion of Agricultural Property Relief to Include Environmental Schemes
2. Scotland’s Next National Park: Nominations and Selection Process
3. Future of Hedgerow Protections in England: New Regulatory Regime Proposed
4. Scottish Forestry Rejects Findings of Tree Report by RSE

Agricultural Property Relief extended to environmental schemes

Following the government’s response to last spring’s consultation on the taxation of environmental land management and ecosystem service markets, there has been a significant development in the agricultural sector. The government has announced the expansion of Agricultural Property Relief (APR) to address a major concern for landowners. Starting from the 6th of April 2025, landowners will be able to engage in environmentally focused land uses without risking their land’s eligibility for relief from 40% inheritance tax.

The expansion of APR now includes farmland entered into qualifying environmental agreements, which will continue after the agreement ends as long as the land is managed in the same way. These agreements must be made with public sector bodies such as the UK government, devolved administrations, public bodies, local authorities, or approved responsible bodies. This expansion covers schemes like the Sustainable Farming Incentive and conservation covenants for Biodiversity Net Gain enforcement.

The government’s decision marks a significant step towards nature-based solutions, although it is estimated to have a modest impact on tax revenue, with a projected £5 million reduction in inheritance tax income in 2028/29. Detailed regulations are yet to be published, and the eligibility of assets for the expanded relief will need to be carefully considered in each situation, especially if a farmhouse is associated with the land.

Additionally, the proposal from the Rock Review to restrict APR eligibility to tenancies of at least eight years will not be implemented, as confirmed by the government. The measure was aimed at promoting longer agreements to benefit landowners and the environment.

Overall, the extension of APR to environmental schemes is expected to bring positive outcomes for landowners, the environment, and the agricultural sector as a whole.