Grazing land

[Kevin-sz0nv]

I have 20 acres of grazing land in a company I own I want to let a minor shareholder put her horses on it to graze and not charge them. It's going to be a long term situation could she eventually have to pay tax on this as some sort of benefit in kind?

[808 Estate]

A friend does something similar. The person with the horses performs basic maintenance (grass mowing, hedge trimming, paints the gate etc) as a "fee" for use of the field.

[Cyberprog]

808 Estate said:

A friend does something similar. The person with the horses performs basic maintenance (grass mowing, hedge trimming, paints the gate etc) as a "fee" for use of the field.

This would be my suggestion. Indeed, I'd exchange invoices of, co-incidentally, the same amount to keep the books balanced.

[AlexRS2782]

My grandparents (now deceased) had a similar arrangement with their neighbours in the countryside. The neighbouring farmers needed occasional extra field space for their animals so my grandparents allowed them to use their 2 fields, when they were required. In exchange the farmers offered to maintain things like the gates, fences, verges & trees of the fields, and also cut the grass on the grandparents driveway, when required. I think they both used to "invoice" each other to the cost of £12 each year to ensure it was listed as an actual agreement.

[Nankie]

Kevin-sz0nv said:

I have 20 acres of grazing land in a company I own I want to let a minor shareholder put her horses on it to graze and not charge them. It's going to be a long term situation could she eventually have to pay tax on this as some sort of benefit in kind?

You could just charge a 'peppercorn' rent of £1 per year...just to ensure there's an agreement in place...