Budget 2020: key takeaways for the rural market
Overall, farmers and landowners will have breathed a sigh of relief following yesterday’s budget.
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Agriculture escaped the tax raid on red diesel, which would have seen a huge hike in fuel costs, and the mooted scrapping of Agricultural Property Relief failed to appear.
Reducing the £10m lifetime allowance for Entrepreneurs Relief to just £1m may discourage some large-scale investments and potential sales, but it is good news that the relief has not been scrapped altogether.
Increasing the Structures and Building Allowance from 2% to 3% could also benefit those planning to invest in their existing business or a new diversification.
The much trailed £640m “Nature for Climate” fund, which aims to encourage the planting of millions of new trees and the creation of large areas of new peatland is a welcome move to help mitigate the impact of climate change and landowners and farmers will play a crucial role in helping to deliver this.