In this world nothing can be said to be certain, except death and taxes. Benjamin Franklin’s words in 1789 remain true in 2014.
Much of the advice currently being given to farmers and landowners is clouded by the uncertainties of potential legislative changes.
As if the changes to CAP are not sufficient, we have the lengthy report with 62 recommendations on Land Reform and the Agricultural Holdings Review will publish its report before the year end.
Changes to stamp duty on land transactions from April 6 2015 and changes to Land Registration due to commence next month are to be followed by a requirement to get all land in Scotland entered on the Land Register by 2024.
While the Scottish Government considers which issues to prioritise in the short time available for the Scottish Parliament to enact legislation before the Scottish Parliamentary Election in May 2016, life in rural Scotland goes on amid all these changes and uncertainties.
As we approach the end of a year in which the sun has shone and farm land prices continue to be strong but grain prices have been poor, it remains important for farmers and landowners to plan ahead for themselves, their families and their businesses.
To assist with those plans, it may be helpful to identify some of the legal certainties and uncertainties as we head towards a new year.
Some important things which we know about include:
* Stamp duty is changing. While there is to be a significant increase in tax on high value residential properties, tax on other land purchases will increase marginally at the top tier.
The purchase of a farm with a mix of land and houses will all be taxed at non-residential rates.
However, it looks as though a purchase of a large area by one person followed by sales of parts of that area to others will not in future be eligible for sub-sale relief.
Stamp duty on leases (including land or commercial property) will require three yearly tax returns.
* Any transfers after December 8 of land not registered on the Land Register will trigger first registration. This includes gifts of land or transfers after death and is likely to involve additional expense.
* With the planned completion of the Land Register, owners of land may wish to undergo voluntary registration to give certainty to their title and make use of Land Register fees which are fixed until 2016.
* The Community Empowerment (Scotland) Bill has been introduced to the Scottish Parliament and has signalled the intent to give communities more levers to own land.
This proposes to extend the Community Right to Buy (at present only applicable to rural land) to almost all urban or rural land and to introduce a right to buy abandoned or neglected land, the definition of which is not yet known.
We should not be surprised to see amendments or additions to this bill as it progresses in 2015.
There are many more uncertainties than certainties but some of the issues which farmers and landowners might wish to bear in mind are:
* The Law of Succession. A Consultation exercise has been started to consider recommendations from the Scottish Law Commission.
For owners of property, whether a house, farm or estate, this may be relevant as there could be changes to the law to protect a spouse or children against disinheritance.
At present, land and buildings can be bequeathed to one child (or spouse) to the exclusion of others. This may change.
* Residential leases. Short Assured Tenancies, which are familiar to those wishing to let surplus houses and cottages with the confidence that vacant possession will be available, may be replaced with a new lease.
* Agricultural leases. Eleven years after the introduction of Limited Duration and Short Limited Duration Tenancies, the review group may recommend some changes.
The group is also considering a number of issues around secure 1991 Act tenancies, including rent reviews, succession and assignation, improvements and right to buy. As with all agricultural law matters, advice should be taken before entering any new tenancy arrangement.
* Business rates. Shootings and fishings, as well as agricultural buildings, are exempt from rates. Following the Land Reform Review report, there may be changes to these exemptions and also consideration as to how land should be taxed in the future.
* Inheritance Tax (IHT) reliefs. If land currently qualifies for Agricultural Property Relief, there is valuable relief against IHT. Again, there have been calls for this to be reviewed as it is seen in some sectors as contributing to the increase in value of farm land in Scotland. Capital taxes are reserved to the UK Government.
Regular reviews and planning are crucial to ensure rural businesses are given the best possible opportunity to thrive in a climate of uncertainty. What is certain is there will be important legislative changes in the next few years.
Richard Blake is a consultant at Thorntons Land and Rural Business.