CG70728 | Leases: introduction: duration of agricultural tenancies

As indicated at CG70721 above, agricultural tenancies are normally annual tenancies which are treated as single continuous tenancies. The following rules should be applied in determining whether an agricultural tenancy is a wasting asset.

• In England, Wales and Northern Ireland: an agricultural tenancy should be treated as a wasting asset when the life expectancy of the tenant is 50 years or less. If there is more than one tenant, it is the one with the greatest life expectancy which is relevant (unless the tenancy will end on the death of one of the tenants).

• In Scotland: an agricultural tenancy should not be treated as a wasting asset.

• Where an agricultural tenancy is held by a company, it will not be a wasting asset.