"The government must make clear its intentions to extend R&D and related tax reliefs on energy efficient solutions and to maintain existing reliefs for installing wind, solar, and other green technology on farmland. Providing the agricultural sector with sufficient incentives to install green energy will be central to the government meeting its net zero targets by 2050. With 11% of UK electricity demand already being met by solar¹, the government must harness farming to build on this success, not let it wane.

"While the introduction of Bio-Diversity Net Gain schemes in 2021 was widely welcomed by the sector as a means to protect the natural environment, many farmers are confused as to how it impacts their Capital Gains and Inheritance tax (IHT) positions. Clearer guidelines and legislation would empower farmers to make confident decisions and ultimately encourage greater use of the scheme.

"The sector will also be hoping for renewed assurance on the long-term security of Agricultural Property Relief (APR), which provides farmers with much-needed relief from IHT. Previous parliamentary reviews suggested this might or could be changed which would have a fundamental impact on the industry and succession in farming businesses. Changes to APR would put many farm businesses in jeopardy over succession planning and the continuation of farming through generations, should there be a change to legislation and a requirement by the successors to fund IHT on agricultural land which currently benefits from relief.

"Within the capital allowances regime, while the super deduction is expiring on 31 March, a similar deduction for unincorporated farming businesses would be very welcome. Many farming businesses operating as partnerships were unable to benefit from the super deduction relief as it was only made available to corporate businesses. The Spring Budget presents an opportunity for the Chancellor to right that wrong, especially at a time when our food security is more important than ever."

¹ https://solarenergyuk.org/wp-content/uploads/2021/05/Solar-Energy-UK-Impact-Report-2020.pdf