CLA welcomes Budgets reversal of VAT judgment

The Budget has reversed a VAT judgment that has caused difficulties for landlords and tenants.

The judgment in the case of Mason v. Boscawen in December 2008 threw a spanner into many farm rent reviews by suggesting that the change in the VAT rate in December amounted to a rent review.

As the 1986 Agricultural Holdings Act precludes a rent arbitration within three years of a rent change, this caused major problems for landlords and tenants.

The CLA, working with partners across the farming industry, made urgent representations to Defra and through the Tenancy Reform Industry Group, calling for the Government to reverse the judgment.

CLA President Henry Aubrey-Fletcher said: "While it came late in the day, we welcome the amendment which has been made in the Finance Bill that was tabled today.

"We have been working hard with Defra and other farming and professional organisations to get this put right. The Bill is very good news for both landlords and tenants, as the Mason v Boscawen judgement threatened both up and downward reviews."