The following Private Client guidance note provides comprehensive and up to date legal information covering:
The Agricultural Tenancies Act 1995 (ATA 1995) introduced farm business tenancies (FBTs) to replace the old-style agricultural holding. A tenancy of agricultural land created after 1 September 1995 will be a farm business tenancy if it meets the business conditions and either:
the notice conditions or
the agriculture condition
Note that there are exceptions listed in ATA 1995, ss 4(1)(a)–4(1)(g) whereby a tenancy will not be a FBT even if it begins on or after 1 September 1995.
All or part of the land must, at all times during the tenancy, be farmed for trade or business (not necessarily an agricultural trade or business).
Before the tenancy begins, the proposed landlord and tenant must exchange notices stating that the tenancy is to be and remain a farm business tenancy and that its character will at first be primarily agricultural.
At the relevant time (not necessarily at the beginning of the tenancy) the tenancy must be primarily or wholly agricultural.
If trustees have vacant possession of the land and they wish to consider letting the property by granting a FBT, consideration should be given to the following:
means of letting—trustees will need to consider the best way to market the property. This could be
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