Family farms in Scotland are facing a unique challenge: a 'shooting tax'. This tax affects small farms that engage in grouse and pheasant shooting, potentially resulting in five-figure tax bills. The Scottish Government's recent Budget includes a change that will impact businesses currently benefiting from the small business bonus scheme (SBBS). According to Scottish Land & Estates (SLE), a landowner association, this change will lead to significant increases in business rates, affecting thousands of sporting estates and farmers.
The issue arises from the removal of tax relief for businesses under the SBBS from April 1. This change will disproportionately affect small and medium-sized family farms and landholdings, many of which engage in minimal commercial shooting. Sarah-Jane Laing, the organization's CEO, warns that this policy decision was made without considering the real-life impact on rural businesses, jobs, and livelihoods. The Scottish Greens, a hard-left political party, claim credit for the change, arguing that it will make wealthy landowners pay their fair share of taxes.
However, Laing argues that the reality is quite different. She highlights that family farms, regardless of their shooting activities, will face financial burdens. This is similar to the UK Government's inheritance tax saga, where a policy devised in isolation threatened family-run businesses and rural communities. Laing also criticizes the narrow interpretation of deer management and pest control exemptions, which may not accurately reflect the practical aspects of land management.
An SLE survey reveals the impact on various businesses. A small livestock farm in Orkney, for instance, uses contractors to control goose populations, as geese are not classified as vermin. A medium-sized Highland estate will also be affected due to its occasional stalking activities for deer control. The tax will apply to farms with the potential for shooting, regardless of current practices.
Farmers like Simon Craufurd find the situation 'ridiculous', as his business, Craufurdland Castle Estate, is not involved in shooting. The Scottish Tories' shadow rural affairs secretary, Tim Eagle, describes the change as a 'tax on shooting' and an unnecessary interference in rural life. Mairi Gougeon, the Rural Affairs Secretary, justifies the withdrawal of the tax break, citing a multi-year consideration process and future talks with the sector.
Despite the controversy, the Scottish Government assures that the small business bonus relief will still be available for specific purposes, such as deer management and vermin control. The 2026-27 Scottish Budget aims to provide the lowest Basic Property Rate since 2018-19, supporting businesses and communities with a substantial relief package. The government acknowledges concerns from the rural sector and plans to carefully consider them before implementing regulations.
