Ecosystem services - the new taxation guidance

With HMRC's recent technical note on the taxation of ecosystem services (and its effect on farming grants), and the publication of the AR and BR tool, there is a lot of new guidance to digest. The guidance on the taxation of ecosystem services payments was published in May 2026. Its key takeaway is that landowners stay farming and trading to achieve maximum Inheritance Tax (IHT) reliefs, but this must be reviewed in depth.