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Agricultural tenancies

Agricultural tenancies come in two forms: those entered into prior to January 1996 that are governed by the Agricultural Holdings Act 1986, known as Agricultural Holdings Act (AHA) tenancies, and the more modern farm business tenancies (FBTs).

Whereas FBTs are more commercial in that they give landlords the right to set rent at market value rates and to recover property as the expiry of the fixed term contract, AHAs are more problematic. Some tenancies ran for an agreed contractual term, but then continued from year to year until determined by notice. Notices often led to proceedings at the Agricultural Land Tribunal, which in the main allowed the tenant to remain in occupation as the tenancies carried with them a right of up to two successions on death.

When buying freehold agricultural land subject to an agricultural tenancy, it is vital to understand what sort of tenancy that land is subject to, its tax implications, your obligations as an employer and planning restrictions, and Everys rural team can help you through this process.  

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