Land Use and Diversification Flashcards
What are Permitted Development Rights set out under?
Town and Country Planning (General Permitted Development) Order 2015
What are the different PD rights (farm buildings)?
Class A - extension, altering, erecting for Agricultural use.
Class O - for the use as Office space.
Class R - for the use of Retail space.
Class Q - for the use of Resi space.
Class S - for the use of state funded School or nursery.
Key use classes to take into account.
Class E (which replaced A1, A2, A3).
Class B8 - warehouse and storage
When did the new use classes come into affect and what was the big change?
September 2020
Amalgamation of A1,A2,A3 into Class E.
3 Internal factors affecting farming.
3 External factors affecting farming.
Internal: Labour shortages. Buildings/Facilities available and changes to size of machinery. Disease/pests (TB/flea beetle/avian flu). Topography.
External: Climate change (conditions). War in Ukraine (demand for food/grain prices). Inflation increases.
What are the basic tax implications of diversifying?
In order to claim APR on land/property they must be used for agricultural purposes./ Converting farm buildings/land and letting them will usually result in a loss of APR.
Similarly, in order to claim BPR there needs to be an element of ‘trading’ purpose. So if buildings are let to an individual in return for rent then they are considered an ‘investment’ and generally won’t be available for BPR.
There is also CGT to be wary of. The uplift on value for a converted farm building will usually be significant for diversification projects.
How did you seek comparables for a diversified project such as Paintballing?
- I spoke to agents from around the country to see if they had any experience of these dealing.
- I posted on the CAAV forum page in the hopes that someone would reach out.
- I analysed similar comparables such as Clay Pigeon Ranges to understand costings.
How did you set your rental value for the paintballing?
We started with a year rent free to allow for significant investment. After this we worked on a sliding scale 10k first year 12k second year - up to 20k (5 years) where it was capped and a % of turnover was charged on top (8%)
Typical sporting agreement rents.
Dependant on size. Whether its a commercial shoot (£10,000) or whether it is a small personal shooting rights (£250).
You mentioned that you served a site notice - what legislation was this under? How long must this be displayed for prior to demolition/works?
Building Act 1984
Must be up for a minimum 21 days.
You say that you submitted for pre-application advice - how did you do this and what legislation was it under?
I did this through the filling out of a FORM 22. Under the Town and Country Planning Order 2015
What did you include in your planning appraisal?
- Site planning history.
- Physical characteristics of the building.
- Future uses.
- Conservation area status.
- Environmental constraints.
- Actionable recommendations.
- Services to the building.
Are you aware of any diversification grants and if so what are they?
The Farm Diversification Grant which provides farmers with between £5000 - £100,000 of funding towards diversification projects. It must be 60% match funded.
What are the traditional and non-traditional methods of income for a woodland?
Traditional - commercial timber sales, including firewood, chippings, timber products, paper.
Non-traditional - woodland crafts, glamping, bushcraft, high ropes, paintballing, camping.
What did you review in business proposals?
- Financials
- Planning
- Design (number of units)
- Access
- Previous experience (how much they charge)
- Quality of product
- Booking numbers/system
