Land used for fuel crops receives tax relief

Land used to grow fuel crops will qualify for agricultural property relief on inheritance tax, Revenue & Customs has confirmed.

A statement from the taxman said: “We take the view that land cultivated for growing energy crops is agricultural land and such use counts as occupation for agricultural purposes.”

Cultivation of the land was the key requirement, it added. That was why a case concerning naturally growing reed beds used for thatch had been turned down.

Carlton Collister of accountant Grant Thornton said although this seemed commonsense there had been some doubt that non-food crops, like short-rotation coppice, automatically qualified.

“Many farmers will draw comfort from this.”