More from the farm
Farm diversification: what you can do, and what to check
Farm shops, camping, holiday lets, barn conversions, energy and more: what needs planning permission, what you can do without it, and the tax, rates and scheme rules that change when you diversify.
Check before you start. Planning rights have conditions and don't apply in some places (National Parks, National Landscapes, listed buildings, SSSIs and others). Talk to your council's planning team, or a planning consultant, before you spend money.
Planning: what you can do without full permission
Some changes are "permitted development": you tell the council first (prior approval) instead of applying for full planning permission.
Camping Pop-up campsites for up to 60 days a year
- You can use land as a temporary campsite for up to 60 days in a calendar year, for up to 50 pitches (tents, motorhomes and campervans).
- You must give the council notice before you start, and provide toilets and waste disposal.
- Check the conditions before you open, such as flood zones and how close it is to other sites.
Homes Barns into homes (Class Q)
- Agricultural buildings, and buildings that used to be agricultural, can become up to 10 homes, with up to 1,000 m² of homes in total, through prior approval.
- The council looks at things like transport, noise, flooding, light, and whether the place is suitable. The building must be capable of conversion without being rebuilt.
- Draw the building first with Auto Shed Plans, or plan the conversion with Auto Builder.
Business Barns into shops, offices and more (Class R)
- Agricultural buildings can change to a flexible commercial use, such as a farm shop, offices, storage, a farm training centre, or outdoor sport and recreation, up to 1,000 m² of floor space.
- Over 150 m² you need prior approval from the council (for transport, noise, flooding and contamination).
Farm buildings New farm buildings
- Many new farm buildings on farms of 5 hectares or more only need prior approval, within size and distance limits.
- Auto Shed Plans draws your building on an aerial photo of the farm and checks the rules for you.
Needs permission Most other changes
Holiday cottages, glamping pods and shepherd's huts left up all year, wedding venues, larger campsites, new homes, and big solar or wind schemes usually need full planning permission. Pre-application advice from your council is worth paying for.
When is planning permission required? · The permitted development rules (GPDO Schedule 2)
Money, tax and rates
- Business rates: farmland and farm buildings are exempt, but buildings used for a diversified business usually aren't. Small business rate relief may bring the bill down. Check with the Valuation Office Agency.
- Inheritance tax: a diversified business can lose Agricultural Property Relief, and an investment business (lettings, storage, most holiday lets) can lose Business Property Relief too. Keep the farm mainly a farming business. See Passing on the farm.
- Holiday lets: the special furnished holiday lettings tax rules ended in April 2025, so holiday lets are now taxed like other property income.
- Income tax: diversification income may need to go on your Self Assessment as a separate business, and counts towards the Making Tax Digital threshold. Self Assessment Helper works out the figures.
- VAT: diversification income can take you over the VAT registration threshold, and can stop you using the Agricultural Flat Rate Scheme.
Grants and schemes
- Land you take out of farming (a car park, a campsite all year, a building plot) usually can't stay in SFI or Countryside Stewardship. Tell the Rural Payments Agency about changes to your land.
- Grants come and go for adding value, farm shops, energy and tourism. Find funding lists those open for your land.
- If you're a tenant, check your tenancy allows it and get the landlord's written consent first. See Farm tenancies.
Other things to sort
- Insurance that covers the public on your farm, and a health and safety risk assessment.
- Licences: food hygiene registration for a farm shop or café (at least 28 days before you open), alcohol and entertainment licences, and a caravan site licence for longer stays.
- Planning conditions for signs, parking and access from the road.
This page is general guidance for England, not legal, planning or tax advice. Wales, Scotland and Northern Ireland have their own planning rules.