New to this - lifting Jimny and towing

You don't mention if you are going to tow on the road? Is it just going to be on sand?

If its road towing then watch out for the gross weight when you are going on a days boating. We know from weighbridge data that our 1,760kg boat actually weights 2,260kg when with fuel etc on board. Add on our 700kg trailer and we are at 2,960kg before we know it (no - we dont tow with a Jimny!)

If you go for a lift you may need a drop plate on the hitch to stop the hitch being too high.

Welcome to the forum. As has been said I do a lot of towing with my gen3 and have kept the standard height to the suspension because of it. It means, as said by Martin, that the towbar is at the correct height for the trailer and given that towbars are covered by type approval just fitting a drop plate may not be legally possible if the bar was not designed to accommodate such. Also as Mike said the dampers are by far the most important thing after sensible tyres when setting up for towing. You don't mention if the trailer is single or twin axle which affects how sensitive the trailer is to the height of the vehicle. Also you don't mention what kind of incline the sand is going to be, a long drag on nearly flat compacted sand is different to a short but relatively steep climb in soft deep sand.

Not sure I agree with you there. As I said earlier towbar heights are covered by type approval which is set for a standard vehicle. The vast majority of towbars are not approved for use with a drop down plate the obvious exception being some of the commercial 4x4 pickups but then not all of them. Anyway not being able to legally use a drop plate means that by lifting the vehicle the trailer is going to almost certainly have at best a level aspect or more likely a nose up aspect. Neither of these are particularly good for stability with a single axle trailer though level is obviously better. The issue comes because little or negative implied load on the towball seriously upsets the stability of the towing vehicle. In a rear wheel drive, like a Jimny, it reduces traction to the drive wheels and under braking, as the front of the car dips a nose up trailer tries to lift the back of the car even higher which causes a jack knife. Like I said level is better but best is a slight nose down aspect that way the trailer is predictable. The other problem with lifting the suspension is that if done properly a suspension lift will increase the availability of movement the suspended mass of the vehicle has, meaning that it will roll and pitch more than standard and will be more affected by the movement of a trailer. Obviously the above is contingent on the relationship between the mass of the trailer and the tow car, a little tip run trailer at 250kg isn't going to be noticeable on a Jimny but a loaded boat and trailer up over 1000kg is going to be very noticeable.