Valuing the partnership interest: Agricultural land tenanted by a partnership
A partnership’s tenancy of agricultural land may have a substantial capital value, but quite often this value is not accounted for at all in the accounts. A clue to its existence will be a deduction for rent in the profit and loss account.
You will need to obtain full details of the tenancy from the taxpayer. These should include:
- the name of the landlord
- when the tenancy was granted
- what was the original rent
- what is the rent being paid now
- the length of the tenancy.
You should obtain a copy of any written agreement.
If a value is required you should follow the guidance at (IHTM24162).