CLA Response Environmental Land Management

The CLA has responded to a call for evidence and consultation by HM Treasury on the taxation of environmental land management and ecosystem service markets. The response supports the proposals to extend agricultural property relief to land being used for environmental land management. This will remove the concerns of taxation of environmental land management and ecosystem service markets farmers and land managers of all sizes that entering into long term environmental management agreements could affect the future viability of the holding for next generations. We have set out our concerns around whether the scope of the relief will be wide enough to fully mitigate the inheritance tax barriers and in particular, highlighted the need for changes to business property relief and ensuring that this land also qualifies for capital gains tax relief.