Equestrian Tenancies
Land designated for equestrian use requires careful planning and thorough consideration, as it presents unique legal and regulatory challenges. These complexities demand precise attention to ensure compliance with regulations and the protection of property interests. If you are a landowner looking to lease land for equestrian activities, understanding the nuances involved is essential.
Key Considerations for Equestrian Land Use:
- Impact on Land Classification:
- Grazing vs. Exercising: If the land is used solely for grazing horses, it typically retains its agricultural classification. However, incorporating activities such as exercising, training, or constructing equestrian facilities may alter its classification, impacting both planning permissions and associated tax benefits like Agricultural Property Relief (APR).
- Planning Permissions: When exercising horses or setting up jumps, arenas, or stables, the property might require a change of use under planning regulations. Failing to secure the appropriate permissions could lead to enforcement actions, fines, or a loss of certain subsidies.
- Subsidies and Reliefs:
- Agricultural Property Relief: To qualify for APR, the primary use of the land must be agricultural. Introducing equestrian activities can jeopardise this relief unless managed carefully.
- Rural Payments Agency Subsidies: Ensure that any tenancy agreements are structured to comply with subsidy requirements to avoid penalties or disqualifications.
- Drafting the Tenancy Agreement:
A well-drafted tenancy agreement is critical to safeguarding your rights and maintaining compliance with applicable regulations. It should clearly define:- Permitted Activities: Specify whether the land will be used solely for grazing or if it includes equestrian training or events.
- Tenant Responsibilities: Outline maintenance obligations, restrictions on alterations (e.g., erecting jumps or arenas), and any requirements for the removal of temporary structures.
- Insurance and Liability: Establish who will hold liability for accidents, injuries, or damages resulting from equestrian activities.
- Subletting and Assignments: Include clauses to prevent unauthorised subletting or a change in the agreed use of the land.
- Practical Steps for Compliance:
- Consult with a planning expert or your local authority to clarify whether proposed equestrian uses require planning consent.
- Engage with a solicitor experienced in rural and agricultural law to draft or review tenancy agreements. They will ensure that the agreement protects your interests and mitigates risks related to subsidies and tax relief.
How Chubb Bulleid Can Assist:
We specialise in assisting landowners with equestrian tenancy matters. Our team provides guidance tailored to your specific needs, ensuring that tenancy documents are robust, clear, and fully compliant with legal requirements. Whether you are considering leasing land for grazing, equestrian training, or as an investment opportunity, we can help you navigate the process with confidence.
To discuss your requirements in detail, please contact our team. We are here to help you make informed decisions and create agreements that work for both you and your tenants while safeguarding your property’s value and compliance.
