Amongst the Budget announcements today was the government's response to last year's consultation on the tax treatment of land used for ELMS and other ecosystem services as well as the taxation of receipts. In brief:

• APR is extended to land used for ELMS from 6 April 2025. It’s not immediately apparent why this change isn’t taking place immediately.
• The Rock Review suggestion that 100% APR be restricted on let land to terms over 8 years was rejected
• No changes to BPR to deem environmental land management a qualifying activity. This will be disappointing to some.
• The question of taxation of ecosystem services schemes is left outstanding and HMT and HMRC are establishing a working group to look at it further

So as yet no clues on whether receipts will fall to capital gains tax or income tax.

If you or your client would like further guidance on these changes then please contact Tom Hewitt or your usual contact at Burges Salmon.