Guidance

Inheritance Tax and Capital Gains Tax exemption guidance: Countryside Stewardship

Updated 23 March 2023

Applies to England

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 [email protected]

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