AS more farmers and landowners move away from agriculture into a variety of new economic ventures, so they find that they are hit by a whole new raft of regulations.

Many of factors these need to be given careful consideration as early as possible in the planning process.

n Business Rates - having been protected from business rating by virtue of the agricultural use of their land and buildings, many diversifying farmers have been shocked to find out just how highly the district valuer rates their properties once they are in commercial use.

There does now seem to be a more open approach by the Valuation Office Agency, so an early check to assess future rate demands would be a wise move.

Bearing in mind the time the appeals process takes and the fact that the rates, as assessed, must be paid in the interim, time spent on getting it right first time will seldom be wasted.

n Taxation - individuals, partners and directors will all have to take advice on how their particular circumstances will be affected by the new enterprises. All taxes may be affected. The definition and treatment of a "business" vary from tax to tax with potentially expensive results if advance planning is not undertaken.

Particular areas of risk are:

1. Inheritance Tax - the loss of Agricultural Property Relief, especially on the farmhouse, and the loss of Business Property Relief, particularly on buildings.

2. Capital Gains Tax - the loss of Business Taper Relief for individuals and partners.

3. Income/Corporation Tax - income being taxed under a different tax schedule with fewer allowances for expenses, thus creating a higher taxable income.

4. VAT - the risk of becoming partially exempt with the disallowance of input tax.

Any of these can mean a substantially increased tax bill which may wipe out the benefits of the move away from farming.

n Liability - in the likely event that the former farming business was comparatively "private" in that it was in the sole trader on the site and was only visited by those trading with it, liability and insurance were quite straightforward.

However, with farm buildings converted to commercial use, activity will have been greatly stepped up.

Outsiders may be operating businesses to which the public have access. The farming operations may also still be active nearby, perhaps creating potential traffic, noise, smell or dust nuisances.

n Insurance - the existing farm insurance is unlikely to be adequate.

None of this need put off the determined entrepreneur, but it does mean allowing time to plan carefully.