Practical Land Management and Capital Works

The HLS allows for applications for capital works funding. These cover a range of activities from hedge restoration and walling to the provision of cattle handling facilities, the restoration of historic buildings and planting of new woodlands. Some works are funded through standard rates while others are a percentage of the actual cost and quotes may be required to establish the costs for grant aid.

Of those funded as a percentage of costs, some pay at 100%, others, where there is a tangible financial benefit to the farmer, are funded at a lower rate. In all cases the farmer has to pay for the works before claiming the grant on the basis of receipted invoices. This can cause a cash flow problem, particularly for commons associations although the burden can be reduced by the submission of interim claims. If there is an issue, consult your local Natural England adviser at an early stage.

With capital works it is important to consider VAT. Commons associations are not VAT registered so to minimise costs most commons associations works are paid for by a commoner who then charges the association the amount net of VAT.

For more information about the practical considerations that can arise in negotiating management, click here.