- Déc 18, 2020
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Most of our competitors sell grazing contracts that are either short-term common law leases or agricultural leases that limit the tenant to using the land to feed livestock. « It is therefore essential to choose the right contract, otherwise the landowner may inadvertently give pastures legal rights to their land. » The use of a lease to achieve the objective is acceptable, but the tenant obtains certain rights at the owner`s expense. For example, the landlord must inform the tenant of his intention to terminate the grazing lease in a timely manner and in some way. « Before accepting pastures, it is important for the owner to understand the difference between grazing horses and livestock. » It makes sense to have a formal agreement that is well developed when someone else is allowed to use or have access to a part of your country. This legal area is complex and it is important to ensure that you retain the full rights and benefits of your country. If the tenant wants to set up part of their activity on your land (including training and school education) and the pasture becomes a part-time job for that store, you can grant a business lease. However, you should expressly enter into a contract with Part II of the LTA to avoid the creation of a particularly important guarantee if the country has development potential or if you wish to recover it for your own purposes. This grazing agreement is neither a lease nor a licence to be filled. It is known in law as « profit » take, and the effect is to grant a right to buy a crop and take the harvest with animals to graze the country. To be considered a profit, you have to sell a single crop (in this case grass) and the harvest must last less than a year. When creating an agreement on the occupation of farmland by horses, it is necessary to take into account the provisions of the Agricultural Tenancies Act of 1995, as the situation is not entirely simple and can create some confusion.
A license allows a horse owner to graze his animals for a short period of time. It confers no rights on the country and you, as a landowner, remain in the occupation. This means that you can continue to claim BPS in the countryside and retain certain tax advantages (for example. B, a grazing tax is considered a commercial income and not a real estate income, which allows you to charge more grazing costs than rental income). This information and models above are intended to provide guidance and areas to be considered for those who intend to conclude such agreements. Anyone who proposes to enter into such a written agreement should consider their particular or professional advice with respect to their particular circumstances. Landowners are often asked to lease their land for horse grazing; this can sometimes be a source of income from land that is not optimally suited to use by the main farm. However, when reviewing these landowners, it is important to ensure that they are able to reclaim ownership of the country if they wish, and their ability to do so depends on the type of lease used. When creating an agreement on the occupation of agricultural land, it is necessary to take into account the provisions of the Agricultural Rent Act 1995, but unfortunately the position with regard to the occupation of horses is not easy and can create confusion.
For an agreement to become an operating lease (FBT) of the 1995 Act, it is first necessary that all or part of the land be « exploited » for the purpose of trade or commercial activity. « farming » involves the exercise of an agricultural activity, but trade or enterprise should not be used for agricultural purposes. Although the use of land by horses is not necessarily used for agricultural purposes, since horses are not « farm animals » unless they are considered meat or agricultural work, it is clear that the pastures are.