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Agricultural Property relief - Other use

Will allowing occasional other use compromise Agricultural Property Relief.

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Client has farmed land (Pastoral) themselves for many years and the estate would be eligible for Agricultural Property Relief.

They have been asked if they would be willing to let out a field  2-3 weekends a year for parking. No permanent infrastructure would be required and the field mown before use. A licence to use the land on a restricted basis would be granted rather than a lease.

I don't feel that this would adversely impact the any claim for this relief but can find no guidance on HMRC site.

Any pointers would be useful.




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By David Ex
21st Sep 2021 11:28
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Replying to David Ex:
By InterimAccountant
21st Sep 2021 12:41

Thanks David,

The legislation is clear regarding the requirement to occupy the land to gain the relief.
I think this a typical grey area where there is little Guidance from HMRC officially.
Providing a licence to use land 2-3 time a year would probably be ok as this doesn't significantly impact the agricultural use in the case of grazing land.

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