Implications of change in business structure for AHA tenancy

are you saying, if we were to write to l/lords, saying we going to change from partnership, to ltd, and they didn't query it, just agreed, that would change from a lifetime tenancy, to a endless one ?
 

B'o'B

Member
Location
Rutland
are you saying, if we were to write to l/lords, saying we going to change from partnership, to ltd, and they didn't query it, just agreed, that would change from a lifetime tenancy, to a endless one ?
Only if the tenancy was then assigned to the company name.
I can’t think of any clause in our tenancy agreement that could be used to restrict our business structure
 
are you saying, if we were to write to l/lords, saying we going to change from partnership, to ltd, and they didn't query it, just agreed, that would change from a lifetime tenancy, to a endless one ?
I think that you could try, but they (or their agents) might realise that you are trying it on and could sour relations.
 

early riser

Member
Location
Up North
Would there not
Partnership to pay rent and ltd co reimburse or pay hire charge for cows to cover it.
Safety net in place and assets still yours.
What are the implications of this for herd basis of valuation? Thought the assets had to be directly used by partnership to qualify for herd basis?
 

glasshouse

Member
Location
lothians
Currently farm in partnership with my father as joint tenants on a successive 1986 AHA tenancy. Father is looking at coming out of the partnership and so for tax purposes I am looking at moving to Limited company status.

Before I sit down and discuss this with my landlord, what are the likely implications for my tenancy agreement?

Other (less preferred) option would be to remain a partnership and bring my wife in as a partner.

Thoughts appreciated, thanks
Get a good lawyer
Ltd co is way to go
 

glasshouse

Member
Location
lothians
We changed from a partnership to a ltd company with no issues. I have no succession rights because dad's tenancy was just single life but the tenancy was always in his name and not the partnerships. Its still just in his name but the limited company pay the rent. We never even mentioned it to our landlords and they have never said anything to us but it's pretty obvious because the limited name is on the bank account.
You now have succession rights!!
Landlord has accepted rent from ltd co, so it is the tenant and it never dies!!!!!
 

glasshouse

Member
Location
lothians
If it was true, don’t you think everyone would be doing it, with the TFA advising you to do so.?
Aha tenancies are created when a rent is paid AND accepted.
If the landlord is dumb enough to accept a cheque from a ltd co, he deserves all he gets.
All tenancies should be to ltd co, tradeable and never dying.
 

silverfox

Member
Location
Shropshire
Aha tenancies are created when a rent is paid AND accepted.
If the landlord is dumb enough to accept a cheque from a ltd co, he deserves all he gets.
All tenancies should be to ltd co, tradeable and never dying.
I don’t think that would stand up in court if you had an AHA tenancy in your name, then just unilaterally started paying from a ltd co and expecting the terms of the tenancy to change. Besides, there’s no more AHA tenancies being created , only successions . Happy to be proved wrong, but doubt it somehow.
 

B'o'B

Member
Location
Rutland
Aha tenancies are created when a rent is paid AND accepted.
If the landlord is dumb enough to accept a cheque from a ltd co, he deserves all he gets.
All tenancies should be to ltd co, tradeable and never dying.
I didn’t think the legal framework exists to start a new AHA anymore? Only succeed an existing one? Therefore wouldn’t you only succeed in turning your AHA tenancy into a FBT?
 

glasshouse

Member
Location
lothians
Slightly different rules in scotland , but i have seen a number of cases where landlord tried to say a tenancy had ended at death, but had accepted rent from son, so they didnt have a case, but put the son through ten years of hell nonetheless
Its all about acceptance of rent.
Aha can still be created in scotland, but both parties have to agree in writing, england probably the same.
But a land agent will always conceal that fact as they make more cash from fbt
 

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Three crop rule derogation for 2020

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Written by Jamie Day

Defra secretary George Eustice’s decision to relax the three-crop rule arable diversification requirement in England for 2020 has been welcomed by farm leaders, despite the minister’s earlier reluctance to take this action. Scotland and the Republic of Ireland had already granted the concession in view of the wet autumn that prevented many farmers from fulfilling […]...
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