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HMRC internal manual

Business Income Manual

Farming: stock valuation: tenant right valuations

The full `tenant right’ or `waygoing’ basis of valuation as described in BIM55245 is not acceptable for annual valuations for tax purposes as it does not equate to the lower of cost or net realisable value or fair value less costs to sell. As such it does not accord with generally accepted accounting practice.

As regards the treatment of a payment made in respect of tenant right when a tenancy ends or a farm changes hands, see BIM55245 (if it is a receipt) or BIM55285 (if it is an expense).