The taxes surrounding farming are complicated across the board and diversification has only helped pile on the complication. The case of Julian & Anor v Revenue and Customs [2026] UKFTT 159 at the First Tier Tribunal (FTT) highlights not just the complexity of VAT rules but the need for HMRC to notify changes.

The Julian case involved a farming partnership which consists of Andrew Julian and his wife Hilary, son Ben and wife Zoe, and Amy, the Julian’s daughter Amy, who is a partner but does not work in the business.

The Julian partnership grows flowers outdoors year round on 14 hectares of land rented from the Duchy of Cornwall on the small island of St Martin’s in the Isles of Scilly, which are sold as gifts and posted to customers. The family also runs a small beef herd and two holiday cottages.