From land reform to employment and from deer to housing, there's a surge of legal and tax changes affecting farms and rural businesses
Over the course of 2026 and 2027, farmers, rural businesses and landowners need to prepare for the practical and financial consequences.
1 – Land reform
- The Land Reform (Scotland) Act 2025 contains provisions relating to large landholdings, defined as those over 1,000 hectares.
- It introduces requirements for Land Management Plans and community engagement, and possible 'lotting' if you sell.
- Changes to agricultural tenancies could affect resumption of leases, notice periods, and compensation.
- Uncertainties about definitions and interactions mean people could be drawn into the Act when they're not expecting to be.
2 – Crofting law
- The Crofting and Scottish Land Court Act 2026 aims to simplify crofting law while supporting crofting as a way of life.
- Changes include a new way to become an 'owner-occupier' crofter, and simplified assignation of a croft tenancy to family members.
- The duty to cultivate and maintain a croft includes a new option of putting it to 'environmental use'.
- A grazing share will also now transfer when a croft tenancy is acquired.
- The process for rectifying errors in the Crofting Register becomes more flexible.
3 – Employment rights
- New rights for employees introduced by the Employment Rights Act 2025 include 'day one' rights to paternity leave and parental leave.
- From January 2027, protection from unfair dismissal will apply after six months rather than two years.
- Farms and estates could well be affected by new rules on guaranteed hours for casual and seasonal workers.
- Employers must take reasonable steps to prevent third-party harassment – e.g. estates may be liable for guests' and visitors' behaviour.
- Practical help on managing employment issues is available through our fixed-fee Prism service.
4 – Environment and biodiversity
- The Natural Environment (Scotland) Act 2026 opens the way for legally binding targets on nature restoration.
- It will update the National Park frameworks and modernise the powers of National Park authorities.
- It expands the grounds on which NatureScot can require landowners to prepare deer management plans.
- Much of the detail is still to come, but it's another one to keep on your radar – as ever, early planning is always going to be more effective than 11th-hour reactions.
5 – Succession, APR, and BPR
- Changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) for inheritance tax took effect on 6 April 2026.
- The 100% APR and BPR are now capped at a combined £2.5 million per person; beyond that, the relief drops to 50%.
- The starting point is to work out what you have, what it is worth, and what conditions apply to each type of relief.
- Don't let inheritance tax rush you into decisions about lifetime giving or business restructuring.
6 – Housing and rural landlords
- The Housing (Scotland) Act 2025 enhances tenants' rights and puts additional obligations on landlords. Changes will likely be phased in between 2026 and 2028.
- Rent controls could be used in certain areas to limit rent increases, and there will be restrictions on the frequency of rent reviews.
- Enhanced tenants' rights will include keeping pets, decorating and making alterations.
- Other changes will affect evictions and joint tenancies.
