Treasury Consultation on Environmental Taxation and APR – Government Response

Following last year’s consultation, the Government has just announced that:

“After careful consideration of the responses, the Government’s response outlines it has decided to:

• establish a joint HM Treasury and HMRC working group with industry representatives to identify solutions that provide clarity on the taxation of ecosystem service markets where existing law or guidance may not provide sufficient clarity

• extend the existing scope of agricultural property relief from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, Devolved Administrations, public bodies, local authorities, or approved responsible bodies

not to restrict agricultural property relief to tenancies of at least 8 years"