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HMRC internal manual

Capital Gains Manual

Compensation: displaced tenants: agricultural: Exempt compensation

If you are satisfied that

  • a proper statutory notice to quit has been issued to the tenant, and
  • the notice to quit does not specify any of Cases C-G of Schedule 3 AHA 1986, see CG72386, and
  • that he quit his holding as a result of that notice to quit,then you may accept that the tenant was entitled to statutory compensation under Section 60 AHA 1986, whether or not the tenant served out his period of notice, and whether or not there was then an agreement for early surrender of the tenancy. In worthwhile cases it will be necessary to obtain copies of the relevant documents and correspondence, for example the notice to quit and any surrender agreement, before any decision can be taken on whether the compensation is exempt or chargeable.