Key points
- The type of tenancy can affect the cost and obligations so it is essential to read every agreement.
- The tenant will be entitled to compensation where a valid notice has been served.
- If the terms of the lease require the tenant to make good any dilapidations the payment is deductible against income profits.
- The landlord and tenant must record all items of expenditure and understand the tax treatment from their respective viewpoints.
Various statistics show that just under one-third of the farmland in the UK is farmed under a tenancy of over a year. Those tenancies are split fairly equally between farm business tenancies (FBTs) and Agricultural Holdings Act 1986 tenancies (AHAs). Given every tenancy has two sides to the arrangement – the landlord and the tenant – this affects a lot of taxpayers and tax advisers. With all the changes under way – a theme...