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New Smallholding Farm - Grant & Tax Claims?

Just Purchased a House with 100 acres for Hay Plus 18 acres Woodland - any claims?

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Being a city boy I don't normally get involved in anything rural, but my client has just bought a farmhouse with about 100 acres of land used to grow hay and 18 acres of woodland, mainly Ash.

Could anyone point me in the direction of a resource where I can find out about what grants and tax reliefs he may be able to claim and whether best to claim via his company or a partnership/sole trader (husband and wife are basic rate taxpayers)?

Many thanks.

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Replying to lesley.barnes:
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By BryanS1958
04th May 2021 16:11

Thanks - in Sussex

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By kaff
04th May 2021 15:18

Claim against what??

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By CJaneH
04th May 2021 15:41

My Query is has your client purchased a house & grounds or does he plan to run a small holding? A small holding is a term I relate to a commercial enterprise all be it part time.
Does he propose to let the grazing to live stock farmers or horse owners, purchase livestock, grow vegetables for sale or buy ponies for daughters? I would need to know what my client's plans are before researching.

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Replying to CJaneH:
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By BryanS1958
04th May 2021 16:14

Thanks - it is basically their main residence, but they will be growing hay for sale/own use, woodlands for sale/own use, ultimately intend to have stables/paddocks/riding school.

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By SteveHa
04th May 2021 15:48

You may want to subcontract this. If your client does, indeed, operate a farming interest and if you are unfamiliar with the rather unique rules (such as averaging) you could do more harm than good.

I'm not saying dump the client, I'm saying find someone who can work behind the scenes to get it right for you.

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Hallerud at Easter
By DJKL
04th May 2021 15:49

Is it an Agricultural Holding?

Does he have its AH number?

What did seller say when selling re rights to grants and subsidies?

No idea how you deal with these in the south, as we have our own system, but in essence we complete an annual return with our holdings detailed, fields listed etc, we also get inspected every so often..

No idea current grant schemes available , at one point there was subsidy up here for wild meadow planting and maintenance.

Just be aware that grants and subsidies are not short term, often they have clawbacks over numerous years, the solicitors re sale/purchase ought to have addressed as your client ought to have done diligence regarding what previous grants might come back and bite .

(E.G. If you get a grant for say planting you may take on obligations over numerous years re say weeding etc, with clawbacks for non performance.)

There is also responsibility to notify changes of ownership and undertakings re previous grants and the performance of the conditions.

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Replying to DJKL:
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By BryanS1958
04th May 2021 16:18

Thanks, I don't think it had been actively farmed by the previous owner for some years.

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Replying to BryanS1958:
Hallerud at Easter
By DJKL
04th May 2021 16:39

Well if not considered agricultural land the chances of attracting agricultural subsidies seem limited. (Whatever they may turn out to be going forward post Brexit)

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Replying to BryanS1958:
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By frankfx
04th May 2021 16:41

BryanS1958 wrote:

Thanks, I don't think it had been actively farmed by the previous owner for some years.

All the more reason to view DJKL posting as as a warning, previous owner may have been in default of covenenants?

https://www.nfuonline.com/about-us/our-offices/south-east/west-sussex/

Could be a good signpost to fact find.

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