Scotland’s Charity Air AmbulanceHigh flying life-savers

CAP Reform The updated Common Agricultural Policy

Estate LifeTop tips for hiring out a property

T in the ParkPlanning consent secured for Strathallan Castle

2015The magazine for Bell Ingrambellingram.co.uk

Since we published our last Review, we have had a dramatic twelve months politically; with Scottish voters electing to remain in the Union and a largely unpredicted Conservative majority with overwhelming gains for the SNP across Scotland in the UK elections. Whilst both events have brought a degree of stability to the UK and Scottish economies, the results will undoubtedly be of great significance over the coming years. Just when we thought that the Scottish independence debate was behind us, the impact of the SNP’s dramatic rise in the UK elections and the promises of even greater powers for the Scottish Government, must ultimately lead to further debate in the not too distant future.

Most parts of the UK’s economy should hopefully benefit from a continuity of leadership over the next five years, bringing some stability to landowning and farming communities; notwithstanding CAP reform. Nevertheless, the Scottish Government’s commitment to land reform remains strong and will undoubtedly lead to challenges in the management of Scotland’s land and waters. We must continue to engage with the Scottish Government over these reforms and not lose sight of all that is good in how we own and manage land in Scotland. As David Archer recently said in the long-running Archers radio show, “as a community we are not owners but custodians of the land, looking after it for the next generation”.

Many colleagues and clients will be relieved that the new CAP submission date has now passed, after many weeks of painstaking work in trying to both understand and ensure the accuracy that is required for the new system. In this Review, Mark Mitchell considers the impact of CAP Reform.

Since the general election, the UK government is reportedly aiming to significantly reduce subsidies paid to operators of renewable schemes, over and above the current changes from ROCS to Contracts for Difference and

the degression in Feed-in-Tariffs. The impact on Scotland is unclear, with the Scottish Parliament committing to significant levels of renewable energy production by 2020, but any reductions in subsidies will undoubtedly affect the number of schemes built across the UK. For renewables schemes which are or will soon be operational, landowners hosting or owning schemes will still require valuation advice and Sarah Tyson explores some of the challenges of valuing a renewables scheme.

Another challenge facing landowners is the Scottish Government’s target to have all land registered within 10 years, in accordance with the 2012 Land Registration Act. The time input and costs to some larger estates will be significant and the head of our GIS mapping team, Chris Duncan, explains the systems that Bell Ingram has devised to keep clients’ registration costs to a reasonable level.

I would also like to take this opportunity to thank our guest writers for their contributions to this edition and I hope that you find their articles of interest and relevance to you and that you enjoy reading our 2015 Review.

WelcomeGraham Lumbygraham.lumby@bellingram.co.uk Managing Director

2015 The magazine for Bell Ingram

Editorial contact for ReviewVictoria McCuskerMarketing Managervictoria.mccusker@bellingram.co.uk

01738 621 121

Cover photoCourtesy of SCAA

DesignOwned and Operated, Glasgow

Contents

CAP Reform Page 3

What do you call a Skoda with a new showroom? Page 4

Scottish tax – a brave new world Page 6

Scotland’s Charity Air Ambulance Page 8

Top tips for hiring out your estate Page 10

Rural approach to lone working Page 12

Renewables: valuers into action come fair weather or foul Page 13

Land Registration etc. (Scotland) Act 2012 Page 14

T in the Park Page 16

Agricultural Mortgage Corporation Page 18

Recent appointments Page 19

Property values Page 20

2 Review 2015

Since its inception in 1962, the European Union’s Common Agricultural Policy (CAP) has provided financial support to farmers. Having now witnessed the overhaul of the CAP on three occasions, Bell Ingram’s Mark Mitchell outlines the latest changes and challenges of the new system.

The much anticipated overall reduction in the CAP budget has come as no surprise to the farming community which has been debating the makeup of the reformed scheme for over two years. Perhaps more significantly, the freedom farmers have enjoyed over the last decade to stock and crop their land as they wish ended on 1st January 2015 with the introduction of the Basic Payment Scheme (BPS) to replace the Single Farm Payment Scheme (SFP).

The Scottish Government has opted to implement a transition period between 2015 and 2019 to

allow farming businesses the chance to adjust for the move from the SFP to the BPS area-based farm payment. Farmland has also been categorised into three payment Regions which determine the level of BPS payment, shown below.

Greening, which accounts for 30% of the budget, provides farmers with a top-up payment for taking action to protect biodiversity and reduce emissions. Such actions include maintaining/ protecting permanent grassland, undertaking crop diversification, and complying with the Ecological Focus Areas (EFA). In reality, Greening is a crude method to control farming practice.

Scotland remains the only UK administration to use coupled support since 2003 with three separate schemes covering mainland beef (€100 per calf), island beef (€160 per calf), and upland sheep (€100 per home bred

ewe hogg). Only claimants with at least 80% of their land in Region 3 are eligible for the Scottish Upland Sheep Support Scheme and their hoggs must be retained on holding from 1st October on year of claim until 31st March the following year.

The Scottish Government has launched a new online system, terminating all former mandates and requiring every business wishing to receive grant aid to reregister. While the online system was heavily pushed, many applicants found the paper forms significantly simpler and quicker to complete. Disappointingly, all the best bits from the former system appear to have been thrown out. There is no easy data sheet allowing applicants to view their return and, staggeringly, it is not possible to save or print a copy; raising worrying questions about how much thought was given to the needs of the applicants or their advisors.

The business registration element should perhaps have been a warning to us for what was to come with this year’s IACS returns. The advertised ‘quick and simple’ form has been anything but quick or simple. While the system is certainly very clever and I am sure ticks all the boxes from the developer’s point of view, I suspect that it was trialled in Edinburgh with excellent broadband and not in a rural area with less than clever connection. I suspect the boffins failed to anticipate the amount of time and frustration spent waiting for the system to acknowledge the information inputted prior to crashing all too frequently.

So poor was the system that the Scottish Government extended the deadline from 15th May to 15th June rather than issuing the paper copies they hold for all 2014 applicants in storage. Frighteningly, having spent two years and around £138M to develop this system its performance was dreadful.

Thankfully, the revised system is much improved from that rolled out in mid-March. It is significantly quicker, less prone to crashing, and even allows you to print bits, although we still cannot keep an electronic copy. We can only hope that the Scottish Government’s 140-strong IT team has learnt from the mistakes to create a more useable system for 2016.

I am now turning my mind to the Rural Priorities application window and only hope that a little more thought has been given to this application system!

CAP ReformMark Mitchellmark.mitchell@bellingram.co.uk Perth Office

Region Description Payment Rate

1 Land classified as arable, temporary and permanent grass

€220 per hectare

2 Rough grazing in the non-Less Favoured Areas and grazing categories B, C and D in the LFA Support Scheme (LFASS)

€35 per hectare

3 Poorest rough grazing in LFASS category A €10 per ha(including greening)

3bellingram.co.uk

Bell Ingram has found itself having to get to grips with estates of a different kind after successfully completing its first refurbishment project with international car manufacturer, Skoda.

Bell Ingram Design was appointed by Dalgety Bay based contractors, Alltec Construction, as part of a design and build contract to assist with the £350,000 refurbishment of Skoda’s West End Garage in Edinburgh. The project formed part of Skoda’s 2018 Growth Strategy, aimed at increasing worldwide sales to at least 1.5million vehicles per year through a comprehensive rebrand.

Since 2011, Skoda has sought to

renew and expand its product range and the rebranding of its dealerships has constituted the final phase of this process. The brand identity embodied in its modernised vehicles is now being reflected in the appearance of Skoda’s dealerships, with a view to enhancing the experience of its customers.

The Bell Ingram Design team, led by Associate and architect, Bruce Stephens, spent six weeks on site at Cultins Road, Sighthill, supervising the implementation of the refurbishment project. The team worked seamlessly alongside Skoda’s specific requirements to design and equip the showroom with the correct

fixtures, fittings, furniture, and materials within the project’s allotted timescale. The modular and flexible nature of the various Skoda design elements also meant that Bell Ingram’s architects were able to adapt them to suit the needs of the West End Garage.

Bruce said: “It was great to be able to get on board with this project with Alltec Construction and Skoda. Bell Ingram Design has not previously worked on a project quite like this and so it was good to be able to try our hand at something different.”

Bell Ingram’s collaborative approach to working in partnership alongside other contractors and clients was a key component in the success of this commission. Bruce explains:

“having worked alongside Alltec Construction on previous jobs, we have an established working relationship and so cooperated very well with one another on this project.

“Given that this is our first design and build contract for an international car manufacturer, we are extremely pleased with the outcome of the refurbishment and I truly believe that the garage portrays Skoda’s new corporate image very well.”

It would appear that Bruce’s clients at the West End Garage are also pleased with the results as they have just appointed Bell Ingram and Alltec to undertake the design and build of their second garage at Halbeath.

Q. What do you call a Skoda with a new showroom? A. Happy!

Bruce Stephensbruce.stephens@bellingram.co.uk Perth Office

Bell Ingram’s collaborative approach to working in partnership alongside other contractors and clients was a key component in the success of this commission

4 Review 2015

Views of Skoda’s

new West End

Garage in Edinburgh

5bellingram.co.uk

In the midst of political bun fights about fiscal powers for Scotland, April 2015 saw Scotland introduce its first devolved taxes in 300 years, a constitutionally significant event that went largely unnoticed by the man on the street.

Revenue Scotland was specially formed for this task and is now administering the Scottish replacement to Stamp Duty Land Tax (SDLT); Land and Buildings Transaction Tax (LBTT). Initially this is largely the same as its predecessor, although the bands are more incremental and the underlying legislation may diverge over time. A key development was the progressive weighting of tax on higher-end properties however, No 11 managed to steal much of the Scottish Government’s ‘progressive’ thunder by pushing through similar rate changes to SDLT shortly before the LBTT regime commenced.

Landfill Tax has also been devolved to Scotland, the Scottish Government creatively utilising the resources of SEPA to administer this.

Despite the focus on LBTT, arguably the most important change to our taxation is the Scottish Rate of Income Tax (SRIT) and the Scottish General Anti Avoidance Rule (GAAR). Importantly, the Scottish GAAR is rather different to its UK acronym namesake and has been widely dubbed the ‘MacGAAR’. The key differentiator is that the UK GAAR is the ‘General Anti Abuse Rule’, while the Scottish equivalent is the ‘General Anti Avoidance Rule’ and only applies to devolved Scottish taxes. While this difference may seem mere semantics, the implications are arguably quite different. Under the UK regime, HMRC’s understanding of ‘abuse’ is guided by an independent panel of experts on a case-by-case basis.

The Scottish regime is far more rules based and aims to pick up any arrangement that is ‘artificial’ and reasonably seen as being for the purpose of avoiding tax. Due to Revenue

Scotland’s resource constraints, there are no current plans for the review panel structure, which is reason for potential concern. As such, it is quite possible that a structure could be perfectly acceptable for an English SDLT taxpayer but not a Scottish LBTT one, even though the detail of the underlying legislation is currently parallel.

The Scottish Rate of Income Tax (SRIT) is scheduled to come into force from April 2016 and throws up further cross-border anomalies. SRIT is not a discrete tax in its own right but provides a reduction in UK income tax rates to Scottish taxpayers of 10p in the pound, with the Scottish Government having the power to set a rate for the remaining element. A Scottish rate of 10p would therefore mean the Scottish taxpayer is on a par with their UK neighbours; however this could be set higher or lower. With both Labour and the SNP’s stated intent of reinstating the 50p rate of tax, a betting man might assume the new tax powers would be used to raise rates. However, an important restriction is that the Scottish rate is a flat rate across all tax bands, so a Scottish Government would have to choose to penalise all tax payers and not just target higher or additional rate payers.

Importantly, SRIT is applied based on the jurisdictional residence of the taxpayer, not the jurisdiction in which the taxable income originates. As such, it raises a series of questions about where the taxpayer is actually resident for income tax purposes. This is defined as where your main residence is or, in the case of a taxpayer splitting their time between two residencies, defined as the main place of residence.

Where there is more than one main residence, the basic rule is based on where the majority of time is spent however this may prove too simplistic in many cases. In the common example of the Scottish ‘based’ professional who works in London for most of the week, it may require more nuanced

tests of residency and has led to one commentator proposing ‘where does one keep one’s dog’ as a good litmus test for establishing residency.

As stated, SRIT only applies to non savings income, which means some key winners and losers. Property receipts are not considered savings income and will fall within SRIT however, including receipts from Real Estate Investment Trusts (REITs). Salary from a Scottish owner-managed business could be subject to SRIT although the same value extracted as dividend would not be. The Scottish Government’s response to how it would curb this is, at best, muddled.

There has also been some confusion over the treatment of SRIT and trusts and it is proposed that SRIT will apply to relevant non savings income where the tax treatment is required to look through the trust structure. As such, non savings income emanating from ‘Bare’ or ‘Liferent’ trusts will be subject to SRIT but not non savings income from these trusts. The exception is Discretionary trusts where distributions will be treated as earned income for SRIT purposes, regardless of the underlying source of the income.

The current timescale is for SRIT to be implemented in April 2016 however there are considerable complications and anomalies created by splitting a well established tax system. Consequently, issues relating to the administration of various forms of tax deducted at source, pension contributions and gift aid have required addressing. There will be obvious winners and losers with the only guaranteed winners likely being the lawyers and accountants.

Chiene + Tait provides quality accountancy advice including niche services from advice on heritage assets to fraud investigations. Visit www.chiene.co.uk.

Scottish tax – a brave new worldRory KennedyPartner Chiene+Tait Chartered Accountants

The Scottish Rate of Income Tax (SRIT) is scheduled to come into force from April 2016 and throws up further cross-border anomalies

Guest contributor

6 Review 2015

All change on

the north side of

Hadrian’s Wall

7bellingram.co.uk

Bell Ingram recently nominated Scotland’s Charity Air Ambulance (SCAA) as one of three charities to proactively champion. SCAA plays a vital role in protecting Bell Ingram’s rural clients and we are also exploring ways in which we can support the charity’s initiatives to improve navigation in remote areas. SCAA’s Media Manager, Maureen Young, explains the charity’s role in saving lives across Scotland.

In 2013, the launch of Scotland’s Charity Air Ambulance enhanced pre-hospital care north of the border, increased helicopter air ambulance provision by 50% overnight, and started flying charity-funded emergency frontline clinical care into the hearts of communities across Scotland. Since then, the charity has responded to around 600 emergency callouts; flying

help and hope to communities in every corner of the country.

Scotland’s busy trunk and rural road network, agricultural and other high-risk industries, rural leisure and sporting pursuits all offer the potential for time-critical emergencies. Cardiac and stroke patients for whom rapid intervention is essential also contribute to the day-to-day workload of the country’s only charity-funded air ambulance. Working alongside Government-funded resources based in Glasgow and Inverness, SCAA provides a vital addition to the national fleet particularly in rural emergencies where land-based ambulances can be restricted by distance, travel time, flood, landslide, snow and ice, fallen trees, or inaccessible terrain.

Prior to SCAA’s launch, the Scottish Ambulance Service covered

Scotland’s 5,000,000 square miles using two helicopters and two planes, with further support from MOD and Coastguard aircraft. SCAA marks the realisation of a long-held dream

of a team of like-minded Perthshire businessmen who shared the belief that Scotland required something more. The five worked tirelessly for four years to pull together a partnership of public, private and third sector organisations; presenting a compelling

Scotland’s Charity Air Ambulance Maureen YoungMedia ManagerScotland’s Charity Air Ambulance

The people of Scotland should cherish this new service and give them all the support they can

Guest contributor

The air ambulance

responding to a call

out near Ballater

8 Review 2015

case to the Scottish Government and the Scottish Ambulance Service to convince them that a charity air ambulance could add flexibility and resilience to their operations.

Two years on, the Trustees, staff and crew at SCAA continue to attract support from all quarters and the distinctive blue, green and yellow helicopter has become a familiar and welcome sight in the skies above Scotland. From its central Perthshire base, SCAA serves the whole of Scotland which accounts for a third of the UK’s landmass, over 100 islands and some of the most remote communities in Europe. Although funded by the charity, SCAA paramedics are specially selected from the Scottish Ambulance Service and trained for this demanding role. Missions have taken them as far afield as Mull and Gatehouse of Fleet as well as transferring patients rapidly to hospitals from Oban to Aberdeen.

SCAA receives no Government funding and is supported solely by the public, trusts, companies, and foundations that raise the required funds to keep the feisty little helicopter in the air. Individuals donate money and raise funds through an ever-increasing and innovative range of ventures (from selling knitted egg cosies to flying round the world) donating around a quarter of SCAA’s income. Groups and organisations rally to support the charity and businesses elect SCAA as their Charity of the Year and channel funds to the cause, while Trusts and Foundations account for around 40 per cent of the charity’s income.

Looking forward, a £3.3 million allocation from LIBOR bank fines will allow the upgrade of SCAA’s existing Bolkow 105 helicopter with a more modern, spacious, powerful aircraft that could increase operational

capacity by over 50%. The upgraded aircraft will allow flying at night and in cloud as well as increasing range, endurance and payload. It will also offer a larger cabin to accommodate a broader range of patient categories and allow a family member or physician to fly with the patient.

I owe Scotland’s Charity Air Ambulance my life

Scotland’s Charity

Air Ambulance

coming in for a

landing (top) and

the view on board

9bellingram.co.uk

Top tips for hiring out your estate Joanna GoddardFounder and Co-owner Estate Life

Guest contributor

Hiring out your property can be an effective way to secure a revenue stream from typically the largest asset on your estate. Joanna Goddard is Founder and Chairman of Estate Life, the leading specialist in the private hire and commercial use of historic properties and has advised Channel 4’s Country House Rescue since its inception. Here, she shares her top tips for those considering this type of rural diversification.

Historic properties prove popular venues for a range of events and activities; from corporate events and film locations to weddings, rock concerts and festivals. While venue hire can generate substantial income for castles, stately homes, halls, and churches, other popular locations include barns, gardens, and derelict buildings. The income generated represents a useful contribution to maintenance and running costs and successful venue hire businesses often become significant for local employment.

A business approach can maximise the return on investment from venue hire, as well as ensuring your asset is protected. Various legal issues, the scale of the activity, or the sums involved, make a formal written contract the most appropriate option. Estate Life offers a full toolkit providing step-by-step guidance on how to prepare for, market, price and position a profitable

hire business. The following top tips may get you started:

1. Keep it confidentialEven before a contract for hiring a

property is agreed, confidentiality can be an issue. Corporate hire can include event professionals securing venues for high profile clients. Proprietors may be asked to sign confidentiality agreements as a precursor to any hiring negotiations. Making staff aware of the importance of compliance is vital. The fact that you have long-serving staff and/ or are family run can prove advantageous.

2. Structure feesStructure payments so that the

hirer has paid in advance and include a contractual obligation to pay the full fee in the event of late cancellation precluding a replacement hire. Requiring hirers to obtain event cancellation insurance so that they are able to pay you if they cancel may be sensible.

3. Be specificThe contract should specify the

areas of the property the hirer will and will not have access to, as well as routes of access. If large numbers of people are expected, access arrangements from the main road should be discussed beforehand with the police.

4. Calculate the riskAnyone hiring out a property as a

business needs to consider the health and safety of those using it and their own employees. Risk assessments should be carried out and appropriate steps taken to minimise potential dangers. The proprietor should seek to contractually shift any risks to the hirer. Certain limited risks (death or personal injury caused by the proprietor’s negligence) cannot be transferred, but all others should be passed on and the hirer should be obliged to assess, mitigate and insure risks to those attending or working at the event. Proprietors are advised to request copies of the hirer’s insurance policies.

5. Get the licensing rightIf you are hiring out your property

for use as a place of public entertainment, you must hold a public entertainment licence. A liquor licence will be required if you or the hirer proposes to sell alcohol. As proprietor, you can shift the responsibility for obtaining these licences to the hirer but you should request evidence that they are secured. You should also impose on the hirer an obligation to comply with the licences to avoid the property gaining a bad reputation, rending it more difficult to obtain licences in future and limiting its marketability.

6. Think aheadThe use to which the property may

be put should be specified. If the event is a wedding, spell out that use is for a wedding only. If any major changes are going to be required to the grounds or property, for example for a music festival, ensure that the contract covers restoring original layouts.

7. Explore Third Party RightsIt is not unusual for there to be

parties other than the proprietor and hirer to be involved in an event (e.g. third party rights to event photography). The proprietor should be aware that their property may be photographed and

A business approach can maximise the return on investment from venue hire, as well as ensuring your asset is protected

10 Review 2015

that they will not receive direct benefit unless photographic rights are sold separately or factored into the charge. Exposure of valuable works of art to the public eye should also be considered.

8. Decide what’s personalWhile you may be happy to make

your space available; you may not wish to make all of your possessions available at the venue. Bear in mind that it is likely to be the ambiance of the property that appeals to prospective hirers, so you should consider room dressing. Clearing rooms can be expensive, so care should be taken to ensure that the cost of removal and storage is recovered from the hirer.

9. Calculate the costsVAT may be chargeable. Property

VAT and the interaction of VAT with charitable status (for example when a heritage property is held in a public trust) are complicated areas, and specialist advice should always be sought.

As with all commercial relationships, if the ground rules are clearly understood at the outset there is unlikely to be any need to revert to the contract as everybody understands their

responsibilities. Establishing written rules helps to ensure that events run smoothly, memories remain unsullied by bad feelings, and that your venue’s reputation and popularity grow and grow. And, if it does all go wrong, you may be very glad indeed to have things in writing.

Estate Life works with landowners, family businesses, factors, trustees and managers to research, establish and develop commercial projects on rural estates. They are the UK’s premier resource for vibrant and profitable historic properties and also procure goods and services for member estates. www.estate-life.com

Establishing written rules helps to ensure that events run smoothly, memories remain unsullied by bad feelings, and that your venue’s reputation and popularity grow and grow

Springkell, an 18th

century house

by Lockerbie in

Dumfriesshire

11bellingram.co.uk

Lone working is an inherent aspect of rural industry. Blair Gregor McFarlane of Highland Hill Associates advises clients operating land based businesses on all aspects of rural safety. Here, he shares his approach to ensuring safe systems of lone working.

There is no universal definition of a lone worker although the Health and Safety Executive (HSE) describes lone workers as those who work by themselves without close or direct supervision (HSE, 2005). Our own definition of a lone worker is someone who works alone, away from others and does not see others for the majority of their shift.

Managing lone working can be somewhat of a bug bear to rural industry as 96% of the workforce could be categorised as loan workers when the HSE definition is applied. This is conducive to neither safe working practices nor positive safety management as a broad brush approach to lone

working tends to dilute safe working solutions for genuine lone workers.

Cost/ benefit analysis dictates that lone worker safety must also be financially viable. There are seven tenants which should give every employer a solid base to build a safe system of work upon within their fiscal budget.

1. Is there an alternative to lone working?

2. Does the employee have the relevant information, training and experience?

3. Is the task within the abilities of the lone employee (professional, physical & mental)?

4. Is all equipment suitable for single-handed operation, serviceable and fit-for-purpose?

5. Is there a viable method of communication?

6. Can accuracy of location be maintained?

7. Is there a viable emergency plan?

Applying these tenants to assessing and devising lone working policies and procedures has been tried and tested; proving extremely effective. Although there is no ‘be all to end all’ system for lone working, by asking these simple questions, we have consistently ensured that appropriate and efficient systems of work are established.

One can never overlook technology in any safe system of work and lone working is no different. A whole chapter could be written discussing the advantages and disadvantages of current communication, tracking and locator equipment. Businesses are advised to look closely at which equipment best suits their professional needs, terrain, personnel, geographical location and budget.

Ultimately, the most important tool in any safe system of work for lone working is individual human behaviour. The importance of the ‘Safe Person Concept’ cannot be sufficiently emphasised. No matter how technically robust your system is, if you have or encourage a ‘risk taker’ approach ‘to get the job done’ then inevitably you will one day be staring down the wrong end of the HSE’s barrels.

More and more we see employees taking on the lone working mantle. This is inevitable, as margins become tighter, overheads greater and turnaround times shorter. What we must always remember is that the employee is our greatest asset and should be nurtured and protected. This is particularly relevant when they are working in a remote, inhospitable and dangerous environment on their own. Employees who are confident they have an appropriate and effective support network in place are those who will fulfil their potential, as they feel like a valued team player; a safe team player.

For more information on Highland Hill Associates and its range of health and safety services, please contact Blair on 07846 478 220 or blair@highlandhill.co.uk

Rural Approach to lone workingBlair Gregor McFarlane Principal Advisor Highland Hill Associates

Ultimately, the most important tool in any safe system of work for lone working is individual human behaviour

Guest contributor

12 Review 2015

Renewables are still a new market sector – in Scotland there were no major wind farms 25 years ago. Today, driven by Government targets, there are over 4,000 turbines which have planning consent, with almost two thirds of these already built. Hydro-electricity is an older technology, but new schemes are being built and solar developments, despite changes in support, remain popular as the price of panels continues to fall.

Whilst the additional income is always welcome, it introduces financial management requirements, often related to income or capital tax planning. Bell Ingram’s experts have recently completed large portfolio valuations of major wind and hydro-electric schemes in Scotland for annual accounting purposes, which introduced new challenges for our valuers.

As with any valuation, the circumstances at the relevant date are key. In particular, the basis and level of

any Government support scheme can make a huge difference. The largest wind and hydro-electric projects are generally under the Renewable Obligation Certificate Scheme (ROCS), whilst smaller projects have benefited from Feed-In Tariffs (FiTs). Going forward, large new projects will be subject to the Contract for Difference rules – a competitive system which is already impacting on the choice of projects perceived to be economically viable and thus actually developed. Support schemes have a limited life span and this can dramatically affect income levels over the term of a project, even before taking account of the weather or the political inclinations of the time.

The number of sales to provide market evidence remains low or has been between parties with special interests such as the power generating companies, so valuations depend more upon the valuer’s assessment than the

usual comparable evidence basis. The final value is also affected by other external influences including: the level of electricity prices; the terms of a lease; quality of equipment; and, most importantly, the historic performance or predicted output figures for the particular site. New concepts are also being introduced such as constraint payments (where developers are required to stop production from a site feeding into the National Grid).

Key to the eventual sum in a valuation is the need to use discount rates which reflect the assessment of risk for the particular site, with a range of rates now being accepted within the industry. Overall, renewable projects contribute positively to rural businesses, but it is important to keep an eye on what has often been a windfall, understanding the importance of value and how it might change as a result of influences outside our control – including the weather!

Renewables: valuers into action come fair weather or foul

Sarah Tyson sarah.tyson@bellingram.co.uk Perth Office

13bellingram.co.uk

The Land Registration etc. (Scotland) Act 2012 came into force on 8 December 2014 introducing a new scheme for land registration in Scotland with strict mapping requirements and a much higher standard of deed plan production than ever before. This change has put an increased focus on the quality and accuracy of title plans and the importance of getting the information correct on the plan. This is further highlighted with the new ‘one-shot’ rule where the whole application for title registration will be rejected if any part is not up to standard.

Bell Ingram’s dedicated GIS and Mapping staff have the expertise and experience to prepare highly accurate title plans. Our service has been developed to give the best value to our clients as we can undertake all aspects of the plan preparation in-house from site surveys to plan drafting and large format printing.

Accurate mapping forms the back-bone of all land-based businesses and Geographic Information Systems (GIS) have become the key tool for professional

land managers. Although Bell Ingram has been using this technology to prepare plans for the past 15 years, the last three years have seen significant investment in advanced software and the utilisation of cloud-based services. This innovation ideally positions Bell Ingram to fulfil the obligations of the new title registration process.

The sophistication of Bell Ingram’s digital mapping service means that we are equally able to map properties from fractions of a hectare to thousands of hectares. In this regard, we have prepared detailed plans for individual plots for private sale as well as deed plans covering thousands of hectares for Highland estates. Bell Ingram staff are now using up-to-date GIS software for plan production in all sectors of the business.

Preparation of title plans is only one of a range of GIS and Mapping services offered by Bell Ingram. We have developed an in-house system for estate and forestry management, which is cloud-based allowing all staff using GIS to benefit. We have also developed bespoke systems for our clients to allow

us to work directly and in real-time with them on major projects that require a high level of mapping resources regardless of their location. This has revolutionised our working practices, delivering dramatic improvements in efficiency and effectiveness.

Bell Ingram has recently invested in state-of-the-art Trimble® Global Positioning System (GPS) technology which operates at sub-metre accuracy and, twinned with our desktop GIS software, enables extremely accurate and efficient data capture. Undefined boundaries on titles are now easily captured using the GPS equipment eliminating ambiguity when preparing deed plans. In reverse, unmarked boundaries can be pegged out from the title plans with the assurance that new boundary features, such as fences, are in the correct legal location to avoid future conflicts between neighbours.

With the increased accuracy of IACS records and penalties being imposed for errors, the need for accurate mapping and measurement of all land-based activities is growing rapidly. Bell Ingram’s service is ideal for anyone who requires areas of land to be mapped, measured or marked out with a degree of confidence that can be robustly relied upon.

Land Registration etc. (Scotland) Act 2012

Chris Duncan chris.duncan@bellingram.co.uk Perth Office

The need for accurate mapping and measurement of all land-based activities is growing rapidly

Reproduced from

Ordnance Survey

digital map data

© Crown copyright

(2015) All rights

reserved. Licence

number 0100031673

14 Review 2015

Bell Ingram’s head

of GIS and Mapping,

Chris Duncan, in

action on site

15bellingram.co.uk

Bell Ingram Design is delighted to announce its success in securing planning consent for Scotland’s largest music festival, T in the Park, at Strathallan Castle on behalf of organisers DF Concerts. Having been involved in the project since 2011, Bell Ingram was instrumental in identifying the site as part of a short list of potential locations when it became evident that the festival could no longer be held at its previous site at Balado.

Throughout the lifetime of the project, Bell Ingram has undertaken the following key tasks:

• Site search and identification• Securing planning consent• Design of permanent infrastructure• Community consultation and engagement• Key aspects of the Environmental

Impact Assessment and Environment Statement

• Contract administration of the installation of the permanent infrastructure

The planning application in particular was extremely complex and involved extensive environmental assessments and monitoring. As the site is located within the vicinity of three Scheduled Ancient Monuments, Bell Ingram instructed archaeologists to be on site prior to site works commencing. As it was, evidence of an early Bronze Age domestic settlement was discovered when the first spade was placed in the ground. Field archaeologists, AOC Archaeology, were immediately able to undertake a comprehensive excavation and are now analysing and recording their findings with a view to reporting in due course.

The planning consent, which was granted in May 2015, incorporates

extensive conditions that the Bell Ingram team is now in the process of discharging. Bell Ingram is also overseeing the installation of permanent infrastructure in advance of the events team arriving in force in the second week in June. At its peak, the site will accommodate a set-up team of 5,000 staff in the week leading up to the event with around 85,000 festival goers attending over the course of the weekend.

T in the ParkIain Cramiain.cram@bellingram.co.uk Perth Office

Bell Ingram is also overseeing the installation of permanent infrastructure in advance of the events team arriving in force

16 Review 2015

The site at Strathallan Castle

was subject to extensive

archaeological and

environmental assessments

17bellingram.co.uk

British farming is arguably a challenging industry at the best of times but this year is providing more than its fair share of challenges for the agricultural sector. With falling food prices and inflation alongside continued global volatility, political uncertainty thrown up by recent UK and upcoming Scottish elections, continued fragility of the UK economy and unrest in world markets, being in a position to limit risk to a business is becoming essential.

Agricultural highs and lows are also likely to recur with extended peripheral vision required to navigate the changes to CAP, Land Reform, the Euro exchange rate and how commodity futures are faring. With the CAP deadline already moved to 15 June, it would be reckless to assume that this year’s IACS payments are going to be made in December this year with early 2016 payments more probable at best. Forward planning is going to be more important than ever with cash flow (or lack of) likely to affect many businesses

over the next 12 months. The Agricultural Mortgage

Corporation (AMC) offers competitive financing as an alternative to bank borrowing to both safeguard any immediate funding issues and to improve the long-term financial security of rural businesses. AMC products are based around a farmer’s financial planning and offer longer term and lower rates than typical high street banks offer.

Bell Ingram has a long association with the AMC, being one of the few Agents to offer AMC services following the Corporation’s strong push into Scotland during the early part of 2008. Over the past few years, we have successfully secured funding for a wide array of farm and rural businesses. With recent changes to the eligibility of assets which can be held as security, AMC will now look at Estate properties, sporting values and even Renewable Heat Incentive income when deciding upon loan eligibility.

AMC can provide loan facilities to cover a wide variety of agricultural business projects including land purchase, diversification, renewable projects and existing finance restructuring. This is based on simple and straightforward borrowing options with the main premise being affordable finance with limited bank involvement. AMC prides itself on offering loans on a “loan and leave” principle which removes annual fees, bank managers, annual budgets/cash flows and any other ‘normal bank requirements’. Once a deal has been offered and accepted and the agreed repayments are made on time, the borrower will have no additional fees to pay, unless they wish to modify the deal or borrow additional funds.

With loan options with fixed-rate interest periods from five to thirty years combined with historically low borrowing costs, now could be the optimum time to look at all aspects of your rural business finances.

Agricultural Mortgage Corporation Stewart Hamilton stewart.hamilton@bellingram.co.uk Forfar Office

18 Review 2015

Recent appointments

Top row

Kevin Anderson, Land Agent, Ayr Office

Sandie Duffy, Property Sales Assistant,

Oban Office

John Lewis, Land Agent, Thirsk Office

Middle row

John Maughan, Land Agent, Northwich Office

Clayton McGuiness, Estate Agent, Oban Office

Tadhg McMullan, GIS Analyst, Perth Office

Bottom row

Catherine Smith, Assistant Land Agent,

Perth Office

Sean Williams, Land Agent, Northwich Office

19bellingram.co.uk

Head OfficeDurn Isla Road Perth PH2 7HFTel 01738 621 121 Fax 01738 630 904Email enquiries@bellingram.co.uk

AberdeenTel 01224 621 300 Email aberdeen@bellingram.co.uk

AyrTel 01292 886 544 Email ayr@bellingram.co.uk

Bonar BridgeTel 01863 766 683 Email bonarbridge@bellingram.co.uk

ForfarTel 01307 462 516 Email forfar@bellingram.co.uk

InvernessTel 01463 717 799 Email inverness@bellingram.co.uk

MayfairTel 0870 112 7099 Email info@mayfairoffice.co.uk

MorpethTel 01670 790 723 Email morpeth@bellingram.co.uk

NorthwichTel 01606 523 030Email northwich@bellingram.co.uk

ObanTel 01631 566 122 Email oban@bellingram.co.uk

ThirskTel 01845 522 095 Email thirsk@bellingram.co.uk

This Review is prepared for general

information only. Whilst care is taken in

it’s compilation, neither Bell Ingram Limited

nor its employees or officers accept any

liability for the contents or their application to

any individual circumstances. Readers are

strongly recommended to contact Bell Ingram

to obtain advice appropriate to their needs.

Land & Sporting Capital Values – Scotland

Best Arable £7,000 to £12,000 Per acre

Secondary Arable £3,500 to £7,000 Per acre

LFA Arable £2,000 to £4,000 Per acre

Permanent Pasture £850 to £3,000 Per acre

Rough Grazing £450 to £1,000 Per acre

Hill £50 to £750 Per acre

Productive Conifer Woodland £1,200 to £4,000 Per acre

Pre-Production Conifer Woodland £750 to £1,750 Per acre

Stags £12,000 to £40,000 Per Stag

Driven Grouse £3,500 to £5,000 Per Brace

Salmon £2,500 to £10,000 Per Salmon

Land Values – North England

Best Arable £9,000 to £13,000 per acre

Secondary Arable £7,500 to £10,000 per acre

Permanent Pasture £6,000 to £9,000 per acre

Rough Grazing £3,000 to £5,000 per acre

Hill £1,500 to £3,000 per acre

20 Review 2015