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BPR and APR on meadow land

BPR and APR on meadow land on which grants are claimed

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Client farmer has some meadows in which he let's wild flowers grow. Apart from perhaps a 'once a year' trim, he does not work on the meadows.
Farming is carried out in a Limited Company - Land is not shown in the Limited Company accounts.

He is receving subsidies and this land forms part of his claim.

If he were to die, would his estate benefit from:-

- APR and / or

-BPR on the value of the land

My thoughts is that the land is not being used for the purpose of agriculture and so APR can be claimed.
the land is held outside of the Balance Sheet, so I am unsure BPR would apply - although could you argue that the Business is using the land to meet it's targets to claim the subsidy - and therefore a claim would suceed?

What is the land did not form part of the subsidary claim? would this change?

Replies (5)

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21st May 2022 10:26

You may wish to review the details of the companies farm subsidy/BPS claims to see what is included or not, establish if there is an farm business tenancy in place and if the farmer has control of the company

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By More unearned luck
23rd May 2022 15:46

Who owns the land? The references to it not being shown in the company and held outside the balance sheet suggests that it belongs to the company and that the accounts are wrong to omit it. If not, its a funny way to say that the farmer owns the land personally. But check the paperwork, clients can forget which entity owns the land.
Are the meadows the entirety of the farm or just a part?
Is the "' once a year' trim" better described as haymaking?
Are livestock grazed on the land, other than horses not at stud? If not, why not?
If land owned personally?
How long for?
What sort of tenure does the company have?
Are the meadows worth more than their agricultural value?
I thought East Anglia was all arable, but there seems to be at least some pasture.
Someone (the earliest example is by Christopher Bullock) claimed that the two certainties in life were death and taxes; your 'if' seems a tad optimistic.

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paddle steamer
23rd May 2022 15:50

When you say "he is receiving subsidies" do you mean the individual or the company?

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Replying to DJKL:
By eastangliantaxadvisor
23rd May 2022 17:15

DJKL wrote:

When you say "he is receiving subsidies" do you mean the individual or the company?

The company is
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By Tax Dragon
24th May 2022 13:56

"Farming is carried out in a Limited Company" - is more land actively farmed than is kept as meadow? Is it all one farm? Or maybe has it grown over the years?

These are more pointers (on top of those already provided above) to the sort of issues that might be relevant. Given no-one else here knows the answers, you won't get an answer to your questions. So re-read the thread.

But above all, read the law. Chapters I and II of Part V. APR - you're probably asking the right question. BPR - I'm not so sure you are on the right lines at all. If you get past the initial tests (so BPR is in point) then read s112. Read it carefully, read it slowly, read it well. It doesn't say what I think you probably think it says.

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