Guidance
Inheritance Tax and Capital Gains Tax exemption guidance: Countryside Stewardship
Updated 23 March 2023
Applies to England
© Crown copyright 2023
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This publication is available at https://www.gov.uk/government/publications/countryside-stewardship-inheritance-tax-or-capital-gains-exemption/countryside-stewardship-inheritance-tax-and-capital-gains-exemption-guidance
Countryside Stewardship options and capital items may be available on land designated by HM Revenue & Customs (HMRC) as conditionally exempt from Inheritance Tax or as the object of a Maintenance Fund, depending on the specific undertakings and proposed options or capital items.
The following tables show whether options and capital items:
- are always eligible
- are never eligible
- need checking to make sure that options do not overlap with the obligations of the undertakings
- are eligible if the linked option or capital item is eligible
Applicants with woodland on land designated by HMRC as conditionally exempt from Inheritance Tax (Heritage Relief property) or as the object of a Maintenance Fund should discuss their proposals with the Rural Payments Agency to establish whether the proposed works are not required as part of the Heritage Relief undertakings and therefore would be eligible for funding.
1. Always eligible
140 options (mostly arable, organics and soil and water options) that never overlap with Inheritance Tax exemption general undertakings to maintain the land and preserve its character.
| Code | Option |
|---|---|
| AB1 | Nectar flower mix |
| AB2 | Basic overwinter stubble |
| AB3 | Beetle banks |
| AB4 | Skylark plots |
| AB5 | Nesting plots for lapwing and stone curlew |
| AB6 | Enhanced overwinter stubble |
| AB7 | Wholecrop cereals |
| AB8 | Flower-rich margins and plots |
| AB9 | Winter bird food |
| AB10 | Unharvested cereal headland |
| AB11 | Cultivated areas for arable plants |
| AB12 | Supplementary winter feeding for farmland birds |
| AB13 | Brassica fodder crop |
| AB14 | Harvested low input cereal |
| AB15 | Two year sown legume fallow |
| AB16 | Autumn sown bumblebird mix |
| AC2 | Countryside educational access visits accreditation |
| AQ1 | Automatic slurry scraper |
| AQ2 | Low ammonia emission flooring for livestock buildings |
| BE3 | Management of hedgerows |
| BN3 | Earth bank creation |
| BN5 | Hedgerow laying |
| BN6 | Hedgerow coppicing |
| BN8 | Hedgerow supplement - casting up |
| BN10 | Hedgerow supplement - top binding and staking |
| BN11 | Planting new hedges |
| CT2 | Creation of coastal sand dunes and vegetated shingle on arable land and improved grassland |
| CT4 | Creation of inter-tidal and saline habitat on arable land |
| CT5 | Creation of inter-tidal and saline habitat by non-intervention |
| CT7 | Creation of inter-tidal and saline habitat on intensive grassland |
| ED1 | Educational access |
| FG8 | Anti-predator temporary electric fencing |
| FG9 | Deer fencing |
| FG10 | Temporary deer fencing |
| FG11 | Deer exclosure plot |
| FG12 | Wooden field gate |
| FG14 | Badger gate |
| FG15 | Water gates |
| FG16 | Deer pedestrian gate |
| FG17 | Deer vehicle gate |
| FM9 | Management of geodiversity features |
| FY1 | Deer high seat |
| FY2 | Woodland infrastructure |
| FY3 | Squirrel traps and maintenance |
| GS3 | Ryegrass seed-set as winter food for birds |
| GS4 | Legume and herb-rich swards |
| GS8 | Creation of species-rich grassland |
| GS11 | Creation of wet grassland for breeding waders |
| GS12 | Creation of wet grassland for wintering waders and wildfowl |
| GS14 | Creation of grassland for target features |
| LH3 | Creation of heathland from arable or improved grassland |
| LV1 | Cattle grid |
| LV3 | Hard bases for livestock drinkers |
| LV4 | Hard bases for livestock feeders |
| LV5 | Pasture pumps and associated pipework |
| LV6 | Ram pumps and associated pipework |
| LV7 | Livestock troughs |
| LV8 | Pipework associated with livestock troughs |
| OP1 | Overwintered stubble |
| OP2 | Wild bird seed mixture |
| OP3 | Supplementary feeding for farmland birds |
| OP4 | Multi species ley |
| OP5 | Undersown cereal |
| OR1 | Organic conversion - improved permanent grassland |
| OR2 | Organic conversion - unimproved permanent grassland |
| OR3 | Organic conversion - rotational land |
| OR4 | Organic conversion - horticulture |
| OR5 | Organic conversion - top fruit |
| OT1 | Organic land management – improved permanent grassland |
| OT2 | Organic land management – unimproved permanent grassland |
| OT3 | Organic land management – rotational land |
| OT4 | Organic land management – horticulture |
| OT5 | Organic land management – top fruit |
| OT6 | Organic land management - enclosed rough grazing |
| PA1 | Implementation plan |
| PA2 | Feasibility study |
| PA3 | Woodland management plan |
| RP1 | Resurfacing of gateways |
| RP2 | Gateway relocation |
| RP3 | Watercourse crossings |
| RP4 | Livestock and machinery hardcore tracks |
| RP5 | Cross drains |
| RP6 | Installation of piped culverts in ditches |
| RP7 | Sediment ponds and traps |
| RP8 | Constructed wetlands for the treatment of pollution |
| RP10 | Silt fltration dams/seepage barriers |
| RP11 | Swales |
| RP12 | Check dams |
| RP13 | Yard - underground drainage pipework |
| RP14 | Yard inspection pit |
| RP15 | Concrete yard renewal |
| RP17 | Storage tanks underground |
| RP18 | Above ground tanks |
| RP19 | First flush rainwater diverters and downpipe filters |
| RP20 | Relocation of sheep dips and pens |
| RP21 | Relocation of sheep pens only |
| RP22 | Sheep dip drainage aprons and sumps |
| RP23 | Installation of livestock drinking troughs (in draining pens for freshly dipped sheep) |
| RP24 | Lined biobed plus pesticide loading and washdown area |
| RP25 | Lined biobed with existing washdown area |
| RP26 | Biofilters |
| RP27 | Sprayer or applicator load and washdown area |
| RP28 | Roofng (sprayer washdown area, manure storage area, livestock gathering area, slurry stores, silage stores) |
| RP29 | Self-supporting covers for slurry stores |
| RP30 | Floating covers for slurry stores and lagoons |
| RP31 | Equipment to disrupt tramlines in arable areas |
| RP32 | Small leaky wooden dams |
| RP33 | Large leaky wooden dams |
| SP9 | Threatened species supplement |
| SW1 | 4 to 6 m buffer strip on cultivated land |
| SW2 | 4 to 6 m buffer strip on intensive grassland |
| SW3 | In-field grass strips |
| SW4 | 12 to 24m watercourse buffer strip on cultivated land |
| SW5 | Enhanced management of maize crops |
| SW6 | Winter cover crops |
| SW7 | Arable reversion to grassland with low fertiliser input |
| SW8 | Management of intensive grassland adjacent to a watercourse |
| SW9 | Seasonal livestock removal on intensive grassland |
| SW12 | Making space for water |
| SW13 | Very low nitrogen inputs to groundwaters |
| SW14 | Nil fertiliser supplement |
| SW15 | Flood mitigation on arable reversion to grassland |
| SW16 | Flood mitigation on permanent grassland |
| SW17 | Raised water level on cropped or arable land on peat soils |
| SW18 | Raised water level on grassland on peat soils |
| TE1 | Planting standard hedgerow tree |
| TE4 | Supply and plant tree |
| TE10 | Coppicing bankside trees |
| TE11 | Tree surgery |
| TE13 | Creation of dead wood habitat on trees |
| WB1 | Small wildlife box |
| WB2 | Medium wildlife box |
| WB3 | Large wildlife box |
| WD1 | Woodland creation - maintenance payments |
| WD2 | Woodland improvement |
| WD3 | Woodland edges on arable land |
| WD7 | Management of successional areas and scrub |
| WN2 | Creation of scrapes and gutters |
| WN3 | Ditch, dyke and rhine restoration |
| WN5 | Pond management (less than 100 square meters) |
| WN6 | Pond management (more than 100 square meters) |
| WS2 | Plantations on Ancient Woodland sites - restoration and maintenance |
| WS3 | Squirrel control |
| WT1 | Buffering in-field ponds and ditches in improved grassland |
| WT2 | Buffering in-field ponds and ditches in arable land |
2. Never eligible
10 options that always overlap with Inheritance Tax Exemption general undertakings to maintain the land and preserve its character.
| Code | Option |
|---|---|
| BE1 | Protection of in-field trees on arable land |
| BE2 | Protection of in-field trees on intensive grassland |
| BE4 | Management of traditional orchards |
| HS1 | Maintenance of weatherproof traditional farm buildings |
| HS4 | Scrub control on historic and archaeological features |
| HS5 | Management of historic and archaeological features on grassland |
| HS6 | Maintenance of designed or engineered water bodies |
| HS7 | Management of historic water meadows through traditional irrigation |
| HS8 | Maintenance of weatherproof traditional farm buildings in remote areas |
| WD4 | Management of wood pasture and parkland |
3. Need checking
53 options need a manual check by Inheritance Tax Exemption staff for overlaps against undertakings and baseline condition.
| Code | Option |
|---|---|
| AC1 | Access capital items |
| BE5 | Creation of traditional orchards |
| BE6 | Veteran tree surgery |
| BN1 | Stone-faced bank repair |
| BN2 | Stone-faced bank restoration |
| BN4 | Earth bank restoration |
| BN7 | Hedgerow gapping-up |
| BN12 | Stone wall restoration |
| CT1 | Management of coastal sand dunes and vegetated shingle |
| CT3 | Management of coastal saltmarsh |
| FG1 | Fencing |
| FG2 | Sheep netting |
| FG13 | Stone gate post |
| FM2 | Major preparatory works for Priority Habitats (creation and restoration) and Priority Species |
| GS1 | Take field corners out of management |
| GS2 | Permanent grassland with very low inputs (outside SDAs) |
| GS5 | Permanent grassland with very low inputs in SDAs |
| GS6 | Management of species-rich grassland |
| GS7 | Restoration towards species-rich grassland |
| GS9 | Management of wet grassland for breeding waders |
| GS10 | Management of wet grassland for wintering waders and wildfowl |
| GS13 | Management of grassland for target features |
| HE1 | Historic and archaeological feature protection |
| HE2 | Historic building restoration |
| HS2 | Take historic and archaeological features out of cultivation |
| HS3 | Reduced-depth, non-inversion cultivation on historic and archaeological features |
| HS9 | Restricted depth crop establishment to protect archaeology under an arable rotation |
| LH1 | Management of lowland heathland |
| LH2 | Restoration of forestry and woodland to lowland heathland |
| RP9 | Earth banks and soil bunds |
| RP16 | Rainwater goods |
| SB1 | Scrub control and felling diseased trees |
| SB2 | Scrub control - difficult sites |
| SB3 | Tree removal |
| SB4 | Chemical bracken control |
| SB5 | Mechanical bracken control |
| SB6 | Rhododendron control |
| SW10 | Seasonal livestock removal on grassland in SDAs next to streams, rivers and lakes |
| SW11 | Riparian management strip |
| UP1 | Enclosed rough grazing |
| UP2 | Management of rough grazing for birds |
| UP3 | Management of moorland |
| WD5 | Restoration of wood pasture and parkland |
| WD6 | Creation of wood pasture |
| WD8 | Creation of successional areas and scrub |
| WN7 | Restoration of large water bodies |
| WS1 | Deer control and management |
| WS4 | Access for people |
| WT4 | Management of ponds of high wildlife value (100 sq m or less) |
| WT5 | Management of ponds of high wildlife value (more than 100 sq m) |
| WT6 | Management of reedbed |
| WT7 | Creation of reedbed |
| WT8 | Management of fen |
| WT9 | Creation of fen |
| WT10 | Management of lowland raised bog |
4. Eligible if linked option or capital item is eligible
45 supplements or capital items that are eligible if the linked option or capital item is eligible
| Code | Option |
|---|---|
| BE7 | Supplement for restorative pruning of fruit trees |
| BN9 | Hedgerow supplement - substantial pre-work |
| BN13 | Top wiring - stone wall |
| BN14 | Stone wall supplement - stone from quarry |
| BN15 | Stone wall supplement - difficult sites |
| CT6 | Coastal vegetation management supplement |
| FG3 | Permanent electric fencing |
| FG4 | Rabbit fencing supplement |
| FG5 | Fencing supplement - difficult sites |
| FG7 | Anti-predator combination fencing |
| GS15 | Haymaking supplement |
| GS16 | Rush infestation control supplement |
| GS17 | Lenient grazing supplement |
| HE3 | Removal of eyesore |
| LV2 | Livestock handling facilities |
| SP1 | Difficult sites supplement |
| SP2 | Raised water level supplement |
| SP3 | Bracken control supplement |
| SP4 | Control of invasive plant species supplement |
| SP5 | Shepherding supplement |
| SP6 | Cattle grazing supplement |
| SP7 | Introduction of cattle grazing on the Isles of Scilly |
| SP8 | Native breeds at risk supplement |
| SP10 | Administration of group managed agreements supplement |
| TE2 | Planting standard parkland tree |
| TE3 | Planting fruit trees |
| TE5 | Supplement for use of individual tree-shelters |
| TE6 | Tree guard (tube and mesh) |
| TE7 | Tree guard (wood post and rail) |
| TE8 | Tree guard (wood post and wire) |
| TE9 | Parkland tree guard - welded steel |
| TE12 | Stump grinding |
| TE14 | Identification of orchard tree varieties |
| UP4 | Management of moorland vegetation supplement |
| UP5 | Moorland re-wetting supplement |
| UP6 | Upland livestock exclusion supplement |
| WD9 | Livestock exclusion supplement - scrub and successional areas |
| WN1 | Grip blocking drainage channels |
| WN4 | Ditch, dyke and rhine creation |
| WN8 | Timber sluice |
| WN9 | Brick, stone or concrete sluice |
| WN10 | Construction of water penning structures |
| WT3 | Management of ditches of high environmental value |
| WT11 | Wetland cutting supplement |
| WT12 | Wetland grazing supplement |
5. Contact us
Rural Payments Agency
(Countryside Stewardship)
PO Box 324
Worksop
S95 1DF
Email ruralpayments@defra.gov.uk
Tel: 03000 200 301
Opening times: 8:30am to 5pm, Monday to Friday (excluding public holidays)
Find out about call charges at www.gov.uk/call-charges