Amid predictions that major changes to taxation will be announced by the Chancellor Rachel Reeves, the firm is urging the government to recognise the importance of the rural sector.

David Corrie, Head of Sales and Lettings for Galbraith, said: “Farmers and landowners provide a major boost to the economy, by creating jobs, supplying homes for rent and engaging sub-contractors, all of which contributes significantly to the public finances. There is a real risk that increased taxation will stifle investment and hamper the Government’s other targets such as economic growth and the transition to net zero.”

Galbraith reports that many clients have brought forward transactions in order to pre-empt  potential changes to inheritance tax, capital gains tax or other regulatory changes.

Any increase in Capital Gains Tax is likely to have  an impact on the property market, and may further reduce homes available for rent, a sector which is already under pressure, the firm said. Galbraith reports that dozens of tenants apply for every rental property in rural areas, due to the shortage of residential lets, exacerbated by a raft of regulatory changes in Scotland and England.

David Corrie continued: “The market for land and rural property has just returned to some stability after increases to interest rates in late 2022 and 2023.. Turnover in the market can be increased by a reduction in Stamp Duty Land Tax in England, and Land and Buildings Transaction Tax in Scotland, which would boost tax revenues north and south of the border, as well as the spin-off benefits in home improvement, construction and employment.”

Galbraith is also urging the government to maintain inheritance tax and agricultural property relief at the current levels to enable rural businesses to support environmental policies such as renewable energy schemes, sustainable food production and investments in energy efficiency measures for rural property.