Issuu

Rural Round Up Seminar 2026

Hodsock Priory

Welcome Introduction

Struan McDougall

For any anonymous questions throughout, please submit them via the scannable QR code on your tables.

Building lasting value, together

Farmland Market Review

Thomas Parker MRICS FAAV Senior Associate

Residential & Rural Agency

Political Climate

Economic

10% decrease in the total number of acres marketed in England

Steady start that didn’t quite kick-on

Vendors took stock (…and advice)

Regional variation

Buyers

Values – Prime Arable (England)

2024 - £10,200 PER ACRE

2025 - £10,000 PER ACRE

Average Prime Arable Farmland Value (FG Opinion)

Building lasting value, together

Values – Prime Pasture (England)

Average Prime Pasture Farmland Value (FG Opinion)

Historic Values – All Farmland Types (England)

Chart Title

£10,000

£9,000

£8,000

£7,000

£6,000

£5,000

£4,000

£3,000

£2,000

£1,000

Looking Ahead

Supply

A modest increase of 5%

Vendors

Larger estates releasing land for reinvestment

Buyers

Growth from non-agricultural buyers

Values

Remain at similar levels

Positivity

Thank you for listening

For any anonymous questions, please submit them via the scannable QR code on your tables.

Building lasting value, together

Rural Round Up- Planning Update

Nia Borsey MPlan (Hons) MRTPI

Agenda

• National Planning Policy Framework (NPPF) Consultation

• What does this mean for the Rural Sector?

• Diversification

• Agricultural Occupancy Restrictions

• Land Promotion

• Biodiversity Net Gain

• Opportunities

Press Release

“Thousands more homes to be built faster in every region… saying ‘yes’ to brownfield, ‘yes’ to building around train stations and ‘yes’ to building more blocks of flats”.

Ministerial Statement & Letter to LPAs

Setting the scene outlining the 12 key changes to the NPPF & stating the Government’s objectives.

Draft NPPF & Consultation Paper

Draft wording for the most significant changes made since the NPPF was first introduced in 2012.

Draft NPPF Consultation

16th December 2025 – 10th March 2026

Summary of NPPF Key Changes:

- Longer and more detailed (82 pages to 127 pages)

- Policy References rather than paragraphs with objective boxes

- New concepts, language and ideas

- Policies for Plan Making and Decision TakingNational Decision-Making Policies (NDMPs)

- Reflects a new system – Spatial Development Strategies (SDSs)

- New presumptions in favour of suitably located development

- It's not all about housing – specific employment policies & trains …

NDMP S4- Development within Settlements

• More opportunities for development within smaller rural settlements within the defined boundary (possibly on urban fringe).

• NDMP takes precedence in decision-making regardless of the Local Plan position.

• Opportunities for those settlements which previously were considered unsustainable previously.

One of the biggest changes and influences this policy can have over the Local Plan!

NDMP Policy S5 – Outside Settlements

Only certain forms of development should be approved outside settlements, including:

- Specified developments usually expected in the countryside (e.g. agriculture, burial grounds, infrastructure etc.)

- Rural businesses and services including tourism requiring locations outside of settlements

- Re-use & proportionate extension of existing buildings in a suitable condition

- Brownfield sites deemed suitable for housing and commercial development

- Redevelopment of previously developed land

- Limited infilling in groups of houses

- Exceptions sites

- Housing and mixed-use development physically related and within reasonable walking distance of a railway station with a high level of connectivity, of an appropriate scale and not undermine long term development

Small-Medium Housing Developments

Encouraged

HO6- Planning for a diverse mix of sites

• LPA must look beyond ‘edge of settlements’.

• Rural areas will need to contribute land for development to created affordable housing, services, and ageing population.

• More flexible view on land for housing perhaps considered unsuitable or unsustainable.

‘Allocate sites which will support and enhance the vitality of rural communities and enable villages to grow and thrive, especially where this will support local services.’

Requirement for LPAs to allocate at least:

• 10% of their new housing on sites which are 1ha or less; and

• Further 10% on sites between 1-2.5ha

Grey Belt

Building lasting value, together

Grey Belt

- Grey Belt came into force in December 2024 revision of NPPF

- ‘Grey Belt’ areas refer to areas within Green Belt consider to have lower value and may be suitable for development under specific conditions.

- Intention: Strike a balance between the need for housing and economic growth alongside preserving the most valuable Green Belt land.

Grey Belt Conditions:

- Development would utilise grey belt land in sustainable locations and sites within reasonable walking distance of a railway station with a high level of connectivity.

‘Golden Rules’ for major development:

- Affordable housing 15% above existing until development plan policies are in place capped at 50% or in the absence of this 50%

- Necessary improvements to local or national infrastructure

- Provision of new or improvement to green space accessible to the public

- There is a demonstrable need for land to be released for development of local, regional or national importance

Diversification

Building lasting value, together

Remember!

Always take advantage of your Permitted Development Rights (where allowed of course!)

• Class R- Flexible Commercial (under 150sqm and under 1,000sqm)

• Class Q- Residential

• Class BC- Campsites

• Class B- Temporary Land Use

Padel

Dog Exercise Areas

Indoor, Outdoor & Arenas

Building lasting value, together

Farm Shops, Rural Amenities & Facilities

• Farm Experiences

• Social Media

• Farm Shops

• Restaurants

• Cafes

• Butchers

• Vending Machines

• Brewery/Distilleries/ Farm pub

• Post Offices/ Parcel Collection Points

Natural Burial Grounds

Storage

Indoor and Outdoor

Agricultural Occupancy Restrictions

Agricultural Occupancy

Restrictions

Removal of Occupancy Condition

LPA, in general use two standard tests for removing agriculturally tied properties:

1. 10‑year breach: Demonstrating and evidencing a continuous breach and non-compliance for a minimum of 10 years, allowing to secure a Lawful Development Certificate (LDC). This confirms immunity from enforcement but does not remove the Condition. A S73 application is required to fully remove the condition from the dwelling.

2. 12‑month marketing: Proving a lack of local need through marketing for an appropriate price demonstrating the occupancy condition is no longer necessary.

• Urban-fringe LPAs are known to be flexible, especially in higher-value or commuter-belt areas where local agricultural demand is low.

• National Parks being the strictest- Sometimes replacing agricultural tie removals with local occupancy restriction.

• Value uplifts from removal can be substantial, dwellings restricted by these conditions are typically valued 20-40% below open-market value.

Biodiversity Net Gain – Proposed Changes

BNG- Proposed Changes

 De Minimis exemption will be increased from to 200sqm.

 Simplified requirements for non-exempted small and medium sized developments.

 Consultation on targeted exemptions for brownfield housing sites up to 2.5 ha due.

 Not yet in force as it requires amendments to regulations, expected by Summer 2026.

Opportunities for Rural Sector

Opportunities & Incoming

2026

• Land Promotion- Promote suitable land and sites within the LPA ‘Call for Sites’ process

• Review ‘Grey Belt’ – could any of your land be considered?

• Development opportunities within villages

• Diversification

• Removal of agricultural tie

• Utilise Permitted Development RightsAllows further flexibility!

• Expand agricultural floorspace

• Infill development

NPPF – Expect adoption quickly! Summer 2026

• Only minor changes expected to be proposed following consultation.

Questions?

Tax Hot topics

Robert Hood FCCA Director

Xeinadin.

‘Zen – A- Din’

Accountants Auditors Advisors

• Annual Accounts

• Tax Compliance

• VAT Compliance

• Audit Services

• Management Accounts

• Bookkeeping

• Payroll

• Forecasting and Budgeting

• Tax Planning and Advisory

• Business Advice

• Restructuring

• Full Finance Function

• Company Formation and Secretarial work

• Corporate Finance

• Cloud Accounting

• Software Training

• Forensic and Investigation Accounting

• Buying and Selling Assets

• Exit Strategies and Succession Planning

Smith Craven Accountants have traded in Doncaster, Sheffield, Chesterfield and Worksop since 1928. Assisting local businesses with compliance obligations and advising businesses in order to achieve their goals.

Smith Craven joined Xeinadin in 2022 gaining additional colleagues to add to our expertise and specialisms, helping deliver a wider range of services to our clients.

Budget update

IHT update

Making tax digital

Budget update- Personal Taxes.

• Personal thresholds freeze until 2031

• No Change to National InsuranceEmployment £12,570- £50,270 8% >£50,270 2% Self employment £12,570- £50,270 6% >£50,270 2%

• 26/27 Dividend rate- 10.75% for BR and 35.75% for HRincrease of 2%

• 27/28 Savings and Property income 22% for BR and 42% for HRincrease of 2%

Budget update- Business Taxes.

• Employers NIC – no change

Up to £5,000 0%

Over £5,000 15%

Employment Allowance £10,500- One allowance for all associated companies

• Pension contributions- Salary Sacrificed

From 6 April 2029- exemption of contributions from NIC is capped at £2,000 per year

IHT Update.

• Deaths on or after 6 April 2026

• Now £2.5m cap for 100% APR and BPR (previously announced £1m)

• 50 % Discount thereafter APR and BPR (effective rate 20%)

• Now transferable between married couples which allows spouses to pass on up to £5m in qualifying agricultural or Business assets

• Pension brought into scope of IHT from April 2027

Simple example revisited post April 2026

John and Mary jointly own:

• Farmland & farm buildings (Qualify for APR)

£4m

• Farm machinery & livestock business (Qualify for BPR) £2m

• Total value

£6m

John dies first and leaves everything to Mary (spousal exemption)

Mary then dies passing farm to her two children.

Mary has her own allowance of £2.5m and John’s unused allowance of £2.5m- Total 100% APR/BPR available £5m

Simple example revisited post April 2026

• Total value £6m

• Less 100% APR/BPR (£5m)

• Excess £1m

40% IHT rate on assets after 50% relief – effective rate therefore 20%

Tax due- £1m x 20% = £200,000

Can be paid over 10 annual instalments and interest free

May have the use of both persons Nil-Rate Band

£325,000 to reduce further, depends if absorbed by non farming assets (Savings, Property)

Tax planning options

• Lifetime gifts

• Insurance

• Trusts

• Companies

• Spend and enjoy yourselves now

• Get Married

• Buy more land? Where other assets at 40%

• Do nothing

Lifetime giving.

• Unlimited direct gifts of APR/BPR assets (Hold over relief for Capital Gains)

• Care needed on non APR/BPR assets where Capital Gains

• 7 Year clock - taper relief reduces tax after 3 years

• Incentivise next generation

• Beware:

- Pass on capital gain (20% IHT vs. 24% CGT?)

- Gift with reservation

- Loss of control, divorce risk etc.

- Successive transfers (holding period resets for recipient)

To do list .

• Check who owns the asset

• Know the true value of the asset rather than “its about ….per acre”

• Its not just land and buildings. Need to include machinery, livestock, stock etc.

• Understand your current position now

• Consider all assets, full IHT review not just business assets

• Stand back, aside from the tax implications, what do you want the business to look like in the future?

Making tax digital (MTD).

• HMRC are now in introducing MTD for income tax from 6 April 2026

Who is affected?

• Sole Trader and Landlords

• HMRC contacting those with qualifying income from the 24/25 self assessment return

• Partnerships, LLPs and Companies are not included

Making tax digital.

When will it affect me?

Qualifying income (sales/rental income before costs)

totaling:

• Over £50,000 from 6 April 2026

• Over £30,000 from 6 April 2027

• Over £20,000 from 6 April 2028

• Farmers using profit averaging may delay entry until April 2027

Making tax digital.

What does this mean?

• Keeping digital records in a MTD compatible software

• Sending Quarterly submissions to HMRC- 1st Deadline 7/8/2026

• Final declaration due 31st January 2028

• Tax payments remain the same

Thank you.

Renters’ Rights Act 2025 (RRA 2025)_

An update with a rural/agricultural focus

Residential tenancy regulation RRA 2025

in context

• Pre 15 January 1989 – balance towards tenants

– The Rent Acts

• Rent Act 1977

• Rent (Agriculture) Act 1976

• Post 15 January 1989 – balance towards landlords

– Housing Act 1988 – assured and assured shortholds by notice

– Housing Act 1996 – the automatic AST (from 28 February 1997)

• Post 1 May 2026 – balance back towards tenants

– RRA 2025

– Important to note that the key tenancy reform provisions of the RRA are amendments to the HA 1988. The HA 1988 remains the key act.

– Also important to note that Rent Act protected tenants unaffected.

The Renters Rights Act 2025 (RRA 2025)

• RRA 2025 – Royal Assent 27 October 2025

• Phased implementation

• Chapter 1 of Part 1 – key tenancy reform – from 1 May 2026

• The headline grabbing changes for 1 May 2026: end of ASTs and s.21, monthly periodic assured tenancies only, more leniency on rent arrears (more arrears and longer notice period), pets.

• Also – PRS Database (late 2026), Landlord’s Ombudsman, the Decent Homes Standard (2027-2028). Fines, fines and more fines (up to £40,000 for serious/repeat breaches).

Employees occupying residential accommodation:

Non-Agricultural

Workers

• Service occupancy arrangements – a licence to occupy tied to employment. Still valid and workable.

• Alternatively, monthly periodic assured tenancy could be given.

– Reliance can then be placed on Ground 5C (termination of employment).

• Potential to use common law tenancy in bespoke situations (no rent being charged). Not governed by HA 1988.

Employees occupying residential accommodation:

Agricultural workers

• Little change in the scope of risk and legal principles post 1 May 2026.

• Landlords must still be alive to risk of agricultural workers obtaining an Assured Agricultural Occupancy (AAO).

• The test for an AAO is the same.

• AAO specific risks remain:

– AAO’s arise even if employee occupies as licensee and/or no rent is paid.

– Care needs to be taken if employee has worked full time at another farm/estate.

– Once obtained in respect of a property, AAO status sticks.

QUICK RECAP: Assured Agricultural Occupancies

• An AAO is a type of assured tenancy. (Not an AST and so no s.21).

• An AAO gives an employee enhanced security of tenure over an ‘ordinary’ assured tenant by:

– Disapplying several non-fault grounds for possession

E.g. being able to terminate tenancy following termination of employment.

• Potentially leaves landlords ‘stuck’ with worker, despite employment ending, until:

– the worker breaches the tenancy allowing for a ‘fault’ based possession;

– The tenant agrees to move; or

– Landlord can find suitable alternative accommodation.

Employees who are agricultural workers / risk being such: current best practice

• Grant AST but….

• …must Serve Form 9 notice before the AST is put in place.

• NB:

– Only works if AST is granted.

– Rent must be more than £250 P.A.

• This avoids creation of AAO and allows s.21 to be used.

Employees occupying residential accommodation:

Agricultural workers

Changes due to RRA 2025

– ASTs abolished – need to grant monthly periodic tenancy instead.

– Form 9 replaced – use new ‘optout notice’ (new s.24A HA 1988).

– No s.21 but do have new ‘nonfault’ grounds to end a tenancy.

Employees who are agricultural workers / risk being such: best practice post RRA 2025

• Still to grant a tenancy – use a written agreement (see new s.16D and E)!

• Use the new ‘opt-out’ notice.

• Allows reliance on all grounds for possession – including some important/new revised grounds.

• Note: If you fail to serve the ‘opt-out’ notice then AAO could arise and you cannot rely on certain grounds for possession.

Employees who are agricultural workers / risk being such: other options?

Self-employed. Contractor / subcontractor?

Not agriculture? E.g. game keeper.

Not working full time?

No risk of 2 years accruing? Or can risk be managed?

If an AAO – can still use some nonfault grounds for possession: New ground 1A (sale), 6 (development), 9 (suitable alternative accommodation).

Hands not completely tied.

New mandatory grounds for possession

Case 5A: Property required for ‘qualifying agricultural worker’

• Two sets of criteria:

1. Seasonal or permanent employee where landlord is the employer.

2. Seasonal or permanent employee where landlord is NOT the employer or is working in agriculture under a contract that is NOT a contract of employment.

• Definition of agriculture is the same as in s.1(1) of the R(A)A 1976 (Not gamekeepers).

• 2 Months Notice (NB: Work must continue for 6 months beyond notice date.)

New mandatory grounds for possession

Case 5C: termination of employment

• Rehashing of the old Ground 16, BUT now mandatory ground.

• Allows Landlords to regain possession:

– When employment has ended.

– If accommodation was merely a ‘stop-gap’.

• 2 months notice.

New mandatory grounds for possession

The 2Z Grounds

• Relevant when tenant has sublet cottage within the FBT or AHA tenancy.

• When FBT or AHA ends, without these grounds the sub-tenancy would continue.

New mandatory grounds for possession

Ground 2ZA

• Relevant when FBT or AHA tenant receives NTQ from landlord.

• The FBT or AHA tenant can serve NTQ on the sub-tenant.

• Only applies when the FBT or AHA expiry date or NTQ date is equal to or less that 12 months away when notice is served.

• 4 months notice.

New mandatory grounds for possession

Ground 2ZB

• Relevant for FBT or AHA tenants with a fixed term of more than 21 years, where there is a sub-tenant and the term is to expire or NTQ has been served during holdover.

• The tenant can serve notice on the sub-tenant.

• Only applies when the FBT or AHA expiry date or NTQ date is equal to or less that 12 months away when notice is served.

• 4 months notice.

New mandatory grounds for possession

Note for Both 2ZA and 2ZB

If process is not completed by the time the FBT or AHA ends (e.g. the tenant has only just served notice on the sub-tenant) the superior landlord can rely on tenant’s notice (section 8(5)(3)(f) HA 1988).

New mandatory grounds for possession

Ground 2ZC and 2ZD

• Applies when superior landlord wishes to remove a sub-tenant it has inherited following the end of an FBT or AHA tenancy.

• Useful if tenant has not done anything about a sub-tenant.

– 4 months notice to sub-tenant and then bring possession claim.

– This must be brought within 6 months of the superior landlord becoming the direct landlord of the sub-tenant.

– NB: ACT QUICK!

Importance of the assured tenancy being in writing

• RRA 2025 introduces considerable additions to s.16 HA 1988.

• Key points:

– S.16D and s.16E

– S.16D(3): written confirmation needed that Landlord wishes to rely on certain grounds for possession including the 2Z grounds and 5A – H grounds.

– S.16E(1)(f): no confirmation – cannot rely on those grounds!

– If you are a superior landlord – check your tenant has paperwork

Rent & Rent

• Unlike Rent Act tenants, assured tenants can be charged full/open market rent.

• Make sure (for an employee who is an agricultural worker) if rent is less than market rate, it is above the minimum (£250 p.a.) to create an assured tenancy.

• No more freedom of contract –rent review only under s.13 HA 1988.

• Potential way to deal with an AAO when no other grounds for possession are available?