Agricultural property ‘is becoming a better investment’

Posted 10/02/2010

The value of agricultural property to investors is set to become more pronounced over the coming year, according to new research.

Accountancy firm Saffery Champness has stated that an increasing number of farmers and non-farmers are looking to invest in agricultural land due to its increasing value, as well as the presence of capital tax relief for such property.

Figures from Knight Frank Rural Research show that land values in this sector rose by 11 per cent in 2009, with a further rise of nine per cent set to take place this year.

Mike Harrison of Saffery Champness said these trends, in addition to the availability of agricultural property relief and business property relief in certain cases, are making the sector more attractive.

He said: “An investment in farmland may be appropriate from a tax planning perspective for traditional farming families and for so-called lifestyle farmers alike.”

In December 2009, chartered accountant Butler and Co reminded those looking to qualify for tax relief when purchasing agricultural property to first seek professional advice.