case studies

Below is a selection of recent work that we have handled on behalf of our clients in the agricultural and rural sectors:

successful Court of Appeal decision

We were instructed by landowner clients as their tenant was operating an ‘open farm’ where the tenancy agreement restricted the use of land to agriculture only.  We considered that the ‘open farm’ was essentially a tourist attraction and a project to educate children and therefore contrary to the user restriction.  The tenant sought a declaration from the court on whether the wording in the tenancy agreement allowed the ‘open farm’ use.  The case was appealed by our clients to the Court of Appeal which found in our client’s favour.  The decision has important ramifications for all farm tenancies.  If tenants want to diversify, they will need to look carefully in the first instance at the wording of their tenancy agreements.  They may then need to negotiate with the landlord to undertake any future diversification and the impact on the rent will have to be considered.

Enterprise Management Incentive share option schemes

When a farm is owned by a high-tech company where the non-family management are suitable candidates for an Enterprise Management Incentive (EMI) share option scheme, it is unlikely to be attractive either to the current owners or to the prospective shareholders for the farm to be involved in the new ownership structure.  In one such case, we were able to negotiate a de-merger under which the farm was transferred to a new company without tax charges before the option scheme was put into effect.

agricultural ties

We are frequently consulted on the removal of Agricultural Occupancy Conditions attached to planning permissions or as part of a s106 Agreement.  We have been able to assist owners in the removal of such conditions by demonstrating to local authorities that the occupancy condition is no longer appropriate.  This includes undertaking research of land use in the local area and negotiating and agreeing with the local authority in question a marketing campaign to demonstrate that the condition is obsolete.  This has in many cases added substantial value to the properties concerned.  We were also able to advise on the potential tax consequences.