22 March 2010

UK Rural Update - news in brief

  1. On 2 December 2009, HMRC lodged an appeal against the decision of the First Tier Tax Tribunal in the Balfour case. There are concerns that the appeal could narrow the ability to claim business property relief for a traditional landed estate.
  2. The Pre-Budget Report on 9 December 2009 contained little of interest to most owners of rural property; the main story was the super tax on bankers’ bonuses. The rate of capital gains tax was not mentioned, but many expect it to be increased in the forthcoming Budget.
  3. The Perpetuities and Accumulations Act 2009 will come into force on 6 April 2010. This increases the trust period for new trusts from 80 years to 125 years and will allow income to be accumulated throughout the trust period. The new rules will only apply to trusts created, or Wills signed, after 6 April.
  4. DEFRA have published replies to their consultation on changes to the water abstraction licensing regime. The regime will apply to land currently exempt. The principal area of criticism is the time limits involved – landowners previously exempt will have 12 months to apply for a licence permitting water abstraction for the last 4 years. The Government response is awaited.

Category: Article