Advising on various farm business tenancy issues

Guy Evans recently advised a horticultural client who had been granted a farm business tenancy of a large fruit farm.

The client approached Guy following the tenancy failing to be registered at the Land Registry. On investigation it became clear that the landlord company only owned part of the farm with the remainder owned by the landlord’s directors (and other connected persons personally).

The landlord company therefore did not have title to the whole of the farm it had purported to let. Guy advised as to the status of the tenancy and remedial action which could be taken to regularise the tenancy so that it could be registered.

Because of the high rental value, stamp duty land tax was a key issue. Guy engaged external accountants to advise on the tax consequences of potential options to ensure that remedial action would not incur further stamp duty land tax. It was agreed that the non-landlord land owners would transfer the relevant land to the landlord entity. Guy provided an inexpensive and straightforward solution preventing negative tax consequences for the client.