What are the legal and tax implications of establishing a Habitat Bank on my land?

How Inheritance Tax applies to a Habitat Bank­

Habitat banks are farmed by landowners and tenants as part of their wider agricultural enterprises and grazing platform, with management focusing on stocking type, density and rotation. This agroecological/regenerative production during the 30-year life of the habitat bank encourages the restoration of soils, attracts pollinators, improves grazing herd health, and enhances the productivity of the broader holding. 

This aligns with Defra’s confirmation (in the consultation on taxation launched on budget day) that farmers managing land in environmentally sustainable ways should not, under existing legislation, lose inheritance tax reliefs. Our farmed Habitat Bank model seeks to preserve that important agricultural status.

Do I need planning permission for a Habitat Bank?

It’s unlikely, we anticipate that the creation of most habitats will not involve a significant change in the appearance or use of the land and any necessary application for planning permission will be Environment Bank’s responsibility.

I have a public right of way or access across my land, will this be an issue?

No, there will be no need to make changes to existing public rights of way and it will be incorporated into the Management Plan.

What if my land is tenanted?

Our model is intended to work carefully with the tenanted sector, as tenant farmers should get access to natural capital opportunities. We will always look to find a way to open habitat banks in collaboration with the landowners and their tenant farmers

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