Shepherd and Wedderburn LLP updates

Three yearly returns for LBTT leases – are you ready to review?
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • February 23 2018

Land and buildings transaction tax is a tax on property transactions in Scotland and applies to purchases of residential and commercial properties and leases of commercial premises. One of the components of the regime is the requirement for three yearly reviews of the tax chargeable. The government's approach is for leases to be reviewed for tax purposes on a regular basis over their lifetime so that the tax payable more accurately reflects the amount of rent actually paid over the entire lease period.

Housing land market in Scotland
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • January 26 2018

One of the strategic objectives of the new Scottish Land Commission is to ensure that the ownership and use of land delivers greater public benefit. It has commissioned a series of independent discussion papers on key land reform issues and has now published the first of these. The paper considers how the operation of the land market could be improved, and how the supply of land for new housing could be increased, through public sector intervention.

Private residential tenancies in rural areas
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • January 19 2018

All new residential property leases in Scotland are now subject to a new letting regime, under which it is no longer possible to enter into a new assured tenancy or new short assured tenancy. Instead, all new residential lets (unless exempt) will be private residential tenancies (PRTs). A number of aspects of the PRT and the model tenancy agreement may need to be modified in view of the different characteristics of residential properties in rural areas.

Land reform and community engagement update
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • January 12 2018

The most recent incarnations of the Scottish Parliament's land reform and community engagement policies have continued the land reform agenda regarding land ownership and furthered the empowerment of communities. The Land Reform (Scotland) Act 2016 and the Community Empowerment (Scotland) Act 2015 include proposals for regulations to create a Register of Controlling Interests in Land and extend the community right to buy in order to include a right to purchase abandoned, neglected or detrimental land.

Sporting rights: new code of practice
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • January 05 2018

In a bid to promote and facilitate good practice between landowners and farm tenants, Scotland's tenant farming commissioner is producing a series of codes of practice under the Land Reform (Scotland) Act 2016. The latest of these concerns sporting rights and, among other things, encourages sporting rights holders to communicate with agricultural tenants, in particular regarding access across agricultural land and when planning a shoot.

What you need to know about the modern limited duration tenancy
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • December 22 2017

Agricultural land which is let under a lease on or after November 30 2017 for a term of no less than 10 years is now known as a modern limited duration tenancy (MLDT). Introduced by the Land Reform (Scotland) Act 2016, the MLTD has replaced the former limited duration tenancy (LDT) and it is no longer possible to create a new LDT. While MLDTs are similar to LDTs, there are a number of practical differences which landlords and tenants will need to know.

But it's on the balance sheet – identifying partnership property
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • November 24 2017

Where a farming operation is structured as a partnership, it is important to establish whether the underlying land is partnership property for a number of reasons. These can include whether the land is potentially subject to a legal rights claim on the death of a partner, ascertaining the sums due to the partners on the dissolution of a partnership and also tax reasons, such as whether the land will qualify for 100% business property relief for inheritance tax purposes.

Early discussion essential when negotiating future of limited partnership tenancies
Shepherd and Wedderburn LLP
  • Real Estate
  • United Kingdom
  • November 03 2017

The tenant farming commissioner recently issued guidance on how parties should negotiate the future of limited partnership tenancies. The guidance sets out certain key principles, including that discussions about the future of a limited partnership should take place well in advance of the termination date. Further, all options should be considered in an attempt to meet the wishes of the landlord and the limited and general partners and to support the future sustainable management of the holding.

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