5 November 2021

Today’s speakers

Johnny Dudgeon

Chair

Lynette Swinburne

Associate Director, Savills

Julie Robinson

Partner, Roythornes

Paul ThompsonPartner, Roythornes

Andy Severn

Director, Duncan & Toplis

Graeme Hills

Director, Duncan & Toplis

Jon DearsleyDirector, Savills

Making the most of planning opportunities in rural areas

Lynette Swinburne MRTPI

Associate Director, Savills UK

Policy Context – National Planning Policy Framework

4

Planning policies and decisions should enable:

a) the sustainable growth and expansion of all types of business in rural areas, both through conversion of existing buildings and well-designed new buildings;

b) the development and diversification of agricultural and other land-based rural businesses;

c) sustainable rural tourism and leisure developments which respect the character of the countryside; and

d) the retention and development of accessible local services and community facilities, such as local shops, meeting places, sports venues, open space, cultural buildings, public houses and places of worship.

NPPF 2021

Paragraph 80

Diversification: Temporary uses

5

• 28 days - 56 days until end 2021.

• Can use land for ‘any purpose’ for up to the maximum number of days.

• Moveable structures can be used in accordance with the use but should be removed when the use is not taking place.

• Exclusions are:

• Markets

• Motorsports

• Caravan sites

Permitted Development: Use of land

GPDO 2015

Schedule 2, Part 4, Class B

Temporary Use of Land

Diversification: Permanent uses

6

*Class A1 (shops), Class A2 (financial and professional services), Class A3 (restaurants and cafes), Class B1 (business), ClassB8 (storage or distribution), Class C1 (hotels) or Class D2 (assembly and leisure).

• Permitted development allows for agricultural buildings and any land within its curtilage to change to a flexible commercial use.

• Permitted development allows up to 500 sq.m on any agricultural unit to change use. Once achieved, can move between the uses.

• Permitted development restrictions/criteria.

• Planning application requirements where proposal exceeds allowances of permitted development.

Permitted development: Conversions/Change of Use

Schedule 2, Part 3, Class R

Agricultural buildings to a flexible* commercial use

Diversification

7

• Local plan is the starting point

• If an up to date plan, it should reflect the NPPF

• Uses will be assessed on their wider impacts.

• Key issues:

• Access and car parking

• Impact on historic fabric

• Noise and disturbance to existing nearby uses

Planning application

Anything that falls outside of the scope of the permitted development regime

8

Other opportunities

Renewables

Full planning application

Water Storage and irrigation

Permitted development

Schedule 2, Part 6, Class A of the Town and Country Planning (General Permitted Development) (England) Order 2015 (GPDO)

Full planning application

Conversion for housing

Permitted development

Schedule 2, Part 3, Class Q of the Town and Country Planning (General Permitted Development) (England) Order 2015 (GPDO)

Full planning application

Looking to the future

9

• Changes to Use Classes Order (2020 and 2021)

• Changes to planning system?

• Expansion of AONBs/NPs

• Natural Capital agenda (Biodiversity Net Gain, Nutrients, Zero Carbon)

• Self Build

• First Homes

Where next?

Thank you

Big skies. Big thinking.

New regimes, new structures

3 November 2021

Julie Robinson

What farms and estates are doing…

• Bringing in the next generation

• Letting/taking land on

• Linking with other businesses (JVs)

• Exploring ‘public goods’ delivery

ALL IN AN UNCERTAIN POLICY LANDSCAPE

#WEAREDUNCANTOPLIS

All change for

APR and BPR?

Andy Severn and Paul

Thompson

3 November 2021

• Currently, with care and planning, Inheritance Tax (IHT) is not a

major problem for many.

• Remember the basic rules.

• Structure your business and assets to take maximum

advantage of the reliefs available, both at death and during

lifetime.

Introduction

Is it that easy!

Remember some basic rules

• IHT is a tax on death and on certain lifetime transfers.

• For a lifetime transfer the value of a gift is the loss

in value to the donor.

• Agricultural Property Relief (APR) and Business Property

Relief (BPR) are available, but make sure you qualify.

• APR is only available against “agricultural value”.

• Retain evidence to support claims and minute important

decisions.

Loss to donor

• Gift to 2% of shares in a private company but holding reduces

from 51% to 49%.

• Gift of a small are of land which reduces the value

of a retained asset, e.g. the farmhouse.

• This principle of IHT can often be overlooked, so beware.

Evidence

• Record important decisions including the reason(s) why

decisions are taken, copy notes to accountant, solicitor, bank

etc - third-party evidence.

• Make sure your accounts, both P&L and Balance Sheet show

the best position to support claims for APR and BPR.

• Budgets and cashflow forecasts together with business plans

can often be used to support claims for APR/BPR – for

example for Woodlands.

• If cash is held whilst looking for appropriate additions to the

business, keep records of all opportunities considered.

Accounts presentation

• Make it very clear on the balance sheet and supporting notes

what assets are in use in the business including assets

relating to diversification projects to support the core

agricultural business.

• Land and buildings – often at historical cost and no breakdown

to support.

• Capital account only or capital and current account?

£

Fixed assets – land and buildings 7,345,000

Current assets 264,000

Current liabilities (29,000)

Long term liabilities (150,000)

Net assets 7,430,000

Example

Capital accounts Partner one 6,982,500

7,345,000Partner two 362,500

Current accounts Partner one (32,000)

85,000Partner two 117,000

7,430,000

Partner one (£) Partner two (£)

Land one – 1100 acre at £5,000/acre 5,500,000

Land two – 250 acre at £5,000/acre 937,500 312,500

Farm buildings 245,000

Cottage A 150,000

Cottage B 150,000 50,000

6,982,500 362,500

TOTAL 7,345,000

Capital accounts

Paul ThompsonPartner, Roythornes Solicitors

www.roythornes.co.uk

All change for APR and BPR?

#WEAREDUNCANTOPLIS

Family Investment

Companies

Graeme Hills, Director

3 November 2021

• What is a Family Investment Company?

• Why don’t we all have them?

• Inheritance Tax benefits

• Flexibility benefits

• Assets to consider

• Summary

Agenda

What is a Family Investment Company (FIC)?

• Normal company

• Alternative to trusts

• Long-term Inheritance Tax (IHT) strategy for non-BPR / APR

assets

• Flexibility with income and capital retention and distribution

Why don’t we all have them?

• Not needed if other reliefs apply

• Trusts may be more suitable

• Some assets costly to introduce

• Potential IHT settlements

Inheritance Tax benefits

• No saving on day one

• Long term plan to spread growth around family

• Drawdown of loans enhances value to family shareholdings

• Can be combined with trusts

Flexibility benefits

• Capital introduced retained through loan account

• Can pay salary

• Can pay dividends on different classes of shares

• Can introduce future generations into the business

Best assets to consider for a FIC

• Rental portfolios

• Furnished Holiday Lettings

• Investment portfolios

Summary

• Useful for non-IHT relieved assets

• Flexibility of not giving asset away and retaining

an interest

• Long term solution, not an immediate fix

• Set them up right at the start

Can farmers afford to sell carbon credits?

Jon Dearsley

What’s driving this agenda?

32

Policy Markets

Climate policy

(net zero targets)

Agriculture policy

Environmental policy

Food policy

Trade policy

Carbon offsets

Biodiversity offsets

Pollutant offsets

Water infrastructure

Social prescribing

Supply chain access?

33

BNG Nutrient Neutrality

ELMS /

Environmental

Stewardship

Carbon StrategyCarbon

Sequestration

What30 year ‘nature

reserves’ to enable

development

In perpetuity

woodlands/ wetlands

creation to capture

nutrients

Public funding for

environmental land

management

Carbon footprint and

reductions strategy

Tree planting / peat

wetting

WhoLong term land

managers

Long term land

managersFarmers

All but Institutions and

public sector first

Managers of low value

land

WhenNiche now,

mainstream by 2023Now

ENGLAND: CS until

2024

ELMS: from 2024/5

Now (with soil carbon

to follow)Now

WhereLand close to

development

Southern England and

spreadingEverywhere Everywhere Low value land

Why Income generation Income generationIncome (BPS

Replacement??)

Risk management,

stakeholder

communication

Risk management /

income generation /

capital growth

Some details on 'when' and 'where'

0

100

200

300

400

500

600

700

800

1990 2018

MtC

O2e

Total Agriculture

Why?

34

• Decrease in total emissions = -41%

• Decrease in agricultural emissions = -16%

• Agriculture is becoming a bigger part of the problem

• More action must be taken within agriculture

Decarbonising the Savills Virtual Farm

35

0

100

200

300

400

500

600

700

800

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

Virtual Farm Extensive Mixed Farm Organic Arable + Forestry Extensive livestock All forestry

Gro

ss m

arg

in (

£ / h

ecta

re)

Carb

on

ba

lan

ce (

kg / h

ecta

re)

Net emissions Gross margin £/ha

Decarbonising the Savills Virtual Farm

36

£0.00 (£0.93)

£4.23

(£5.44)

(£3.31)

(£6)

(£4)

(£2)

£0

£2

£4

£6

£8

-1000

-500

0

500

1000

1500

2000

2500

Scenario 0 Scenario 1 Scenario 2 Scenario 3 Scenario 4

Net M

arg

in C

ha

ng

e p

er

Ha

Em

issio

ns (

tCO

2e)

Net Emissions and Net margin change/Ha

Fuels Materials Inventory Crops Inputs Waste Distribution Sequesatration TOTAL Net Margin Change per Ha

Net 722t

Net 873t

Net 525t

Net 1,008t Net

947t

Key Considerations

37

Maintenance

Tenanted

land

TaxPublic

accessAdditional

benefits

Cashflow

Legal

Agreements

Strategy

38

Questions?

Thank you