Commentary

I8.367 Agricultural tenancies in England and Wales

IHT, trusts and estates

I8.367 Agricultural tenancies in England and Wales

I8.367 Agricultural tenancies in England and Wales

Agricultural tenancies are almost always non-assignable. On the other hand an agricultural tenancy granted before 1 September 1995 usually involves a regulated rent and lifetime security of tenure, and thus can be argued to be of value to the tenant even though he cannot sell it. The valuation issues are different and perhaps simpler with respect to agricultural tenancies in England and Wales granted after 31 August 1995 which do not have security of tenure1. Where the landlord is able to terminate the tenancy, even though it might take up to 24 months for a notice to quit to expire, the tenancy's value in terms of what the landlord would pay to obtain vacant possession will be much less than in the case of a tenancy with security of tenure.

The fact that a tenancy cannot be assigned does not prevent it from having a taxable value. The principle of IRC v Crossman2 means that it is valued on the assumption that it is capable of being sold notwithstanding the restriction on assignment, but that it is assumed that the purchaser, after acquiring it, will be subject to the restriction. The Scottish Lands Tribunal case of Baird's Executors v IRC3 is an example of the Crossman principle being applied to an agricultural tenancy which was non-assignable. It is a decision on the value of an agricultural tenancy for the purposes of determining whether and to what extent a lifetime disposition of the tenancy was

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