Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

Compensation: displaced tenants: agricultural: chargeable to CGT

SPC46 & SPC47Often the landlord will not want to wait for the necessary period of notice to expire and will enter into a separate agreement, either oral or written, with the tenant. Under such an agreement, the tenancy will normally be surrendered early and compensation will be paid. Such arrangements were considered by the Special Commissioners in Davis v Henderson, SpC 46 and Pritchard v Purves, SpC 47. The Special Commissioners decided that although the tenants in both cases surrendered the remaining part of their tenancies under an agreement, they were still entitled to statutory compensation under Section 60 AHA 1986. The tenants had quit their holdings in consequence of the issue of notices to quit by their respective landlords. In effect the surrender agreements were not the cause of their quitting, but part of the arrangements made for giving effect to the notices to quit.