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For land subject to an environmental management (EM) agreement to qualify for agricultural relief, the agreement to which the land is subject must be an agreement that is within the definition provided in IHTA84/S124C(6).

The agreement itself must be:

• legally enforceable
• between the occupier of the land or a person with a right in that land, and a public authority
• for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water.

Legally enforceable

The agreement should specify under what conditions the land must be kept and should also specify under what terms the agreement will be considered breached.

Signatories

The occupier of the land or a person with a right in that land may be the freeholder or a leaseholder, provided that the terms of the lease empower them to enter into such agreements.

A public authority refers to:

• the UK Government
• devolved Governments (Scottish Parliament, Senedd Cymru and Northern Ireland Assembly)
• Public bodies
• Local authorities (such as a county or district council in England, a London borough council, the Common Council of the City of London, and the Council of the Isles of Scilly)
• Approved responsible bodies.

The definition of an approved responsible body is one designated under the Environment Act 2021, s119.

For the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water

This condition is drawn widely. The terms “protecting�, “restoring� and “enhancing� all take their natural English meaning.

Where there is genuine doubt over whether an agreement is qualifying under any or all of the above conditions, refer to Technical.

Examples of qualifying schemes in England include the Sustainable Farming Incentive (SFI), the Countryside Stewardship Higher Tier, and Landscape Recovery. Schemes are being developed in Scotland, Wales and Northern Ireland.