Agricultural holdings and tenant farming guide

Relinquishment and Assignation came into force on 28 February 2021

This provision enables a tenant of a secure 1991 Act agricultural tenancy to relinquish their tenancy in return for a payment by the landlord based on the value of the tenancy or, if the landlord does not wish to buy the tenancy, to assign it for value to a new entrant or progressing farmer.

The process enables:

• an eligible tenant farmer to inform their landlord of their intention to relinquish their tenancy
• their landlord may choose to take the opportunity to pay the tenant the value of their secure tenancy and gain vacant possession

or

• if their landlord chooses not to pay the value of the secure tenancy, the tenant can then assign their secure tenancy for value to a new entrant or a person progressing in farming

These provisions apply to an agricultural holding in respect of which:

• the lease was entered into before 27th November 2003, or
• the lease was entered into in writing on or after 27th November 2003 but before the commencement of the tenancy, and the lease expressly states that the 1991 Act is to apply to it

Special arrangements exist for Limited Partnerships. Tenants in a Limited Partnership arrangement are able to use the relinquishment provisions however, if the landlord does not accept the relinquishment, the tenant is not able to assign the tenancy. 

We encourage eligible tenants to speak with their landlord before embarking on this process and we strongly advise you to seek professional advice, on legal matters and on possible tax implications. 

You can find out more details of how to undertake relinquishment and assignation in the code of practice produced by the Tenant Farming Commissioner.