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Country cottage
Key points
- Landowners should take care that lettings to employees are not subject to a secure tenancy.
- Providing notice of an assured shorthold tenancy.
- The benefit-in-kind rules for accommodation cannot be taken for granted.
- The tenant may be exempt from a tax charge on accommodation but these will not always apply to directors.
- In some circumstances occupation by an employee after retirement will not result in a tax charge.
In these difficult times for farming with Brexit and the first Agriculture Bill in more than 40 years letting farm cottages can provide a useful source of extra income but landowners should beware of inadvertently granting a ‘secure tenancy’. Indeed much farm diversification and survival depends on such successful lettings. The legal basis under which cottages are let is a key issue for protection for the landowner and understanding tax planning. More farms are expected to come to market through death...
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