1E+WA hereditament is exempt to the extent that it consists of any of the following—
(a)agricultural land;
(b)agricultural buildings.
2(1)Agricultural land is—E+W
(a)land used as arable, meadow or pasture ground only,
(b)land used for a plantation or a wood or for the growth of saleable underwood,
(c)land exceeding 0.10 hectare and used for the purposes of poultry farming,
(d)anything which consists of a market garden, nursery ground, orchard or allotment (which here includes an allotment garden within the meaning of the M1Allotments Act 1922), or
(e)land occupied with, and used solely in connection with the use of, a building which (or buildings each of which) is an agricultural building by virtue of paragraph 4, 5, 6 or 7 below.
(2)But agricultural land does not include—
(a)land occupied together with a house as a park,
(b)gardens (other than market gardens),
(c)pleasure grounds,
(d)land used mainly or exclusively for purposes of sport or recreation, or
(e)land used as a racecourse.
Marginal Citations
3E+WA building is an agricultural building if it is not a dwelling and—
[F1(a)it is occupied together with agricultural land and is used solely in connection with agricultural operations on that or other agricultural land, F2...]
(b)it is or forms part of a market garden and is used solely in connection with agricultural operations at the market garden [F3, or
(c)it is or forms part of a nursery ground and is used solely in connection with agricultural operations at the nursery ground.]
Textual Amendments
F1Sch. 5 para. 3(a) substituted (1.4.2004) by Local Government Act 2003 (c. 26), ss. 67(2), 128(6); S.I. 2003/2938, art. 7(a) (with art. 8 Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. II; S.I. 2003/2938, art. 7(a) (with art. 8 Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. II
F2Word in Sch. 5 para. 3 omitted (with effect in accordance with s. 1(2) of the amending Act) by virtue of Non-Domestic Rating (Nursery Grounds) Act 2018 (c. 26), s. 1(1)
F3Sch. 5 para. 3(c) and word inserted (with effect in accordance with s. 1(2) of the amending Act) by Non-Domestic Rating (Nursery Grounds) Act 2018 (c. 26), s. 1(1)
4(1)A building is an agricultural building if it is used solely in connection with agricultural operations carried on on agricultural land and sub-paragraph (2) or (3) below applies.E+W
(2)This sub-paragraph applies if the building is occupied by the occupiers of all the land concerned.
(3)This sub-paragraph applies if the building is occupied by individuals each of whom is appointed by the occupiers of the land concerned to manage the use of the building and is—
(a)an occupier of some of the land concerned, or
(b)a member of the board of directors or other governing body of a person who is both a body corporate and an occupier of the land concerned.
(4)This paragraph does not apply unless the number of occupiers of the land concerned is less than 25.
5(1)A building is an agricultural building if—E+W
(a)it is used for the keeping or breeding of livestock, or
(b)it is not a dwelling, it is occupied together with a building or buildings falling within paragraph (a) above, and it is used in connection with the operations carried on in that building or those buildings.
(2)Sub-paragraph (1)(a) above does not apply unless—
(a)the building is solely used as there mentioned, or
(b)the building is occupied together with agricultural land and used also in connection with agricultural operations on that land, and that other use together with the use mentioned in sub-paragraph (1)(a) is its sole use.
(3)Sub-paragraph (1)(b) above does not apply unless—
(a)the building is solely used as there mentioned, or
(b)the building is occupied also together with agricultural land and used also in connection with agricultural operations on that land, and that other use together with the use mentioned in sub-paragraph (1)(b) is its sole use.
(4)A building (the building in question) is not an agricultural building by virtue of this paragraph unless it is surrounded by or contiguous to an area of agricultural land which amounts to not less than 2 hectares.
(5)In deciding for the purposes of sub-paragraph (4) above whether an area is agricultural land and what is its size, the following shall be disregarded—
(a)any road, watercourse or railway (which here includes the former site of a railway from which railway lines have been removed);
(b)any agricultural building other than the building in question;
(c)any building occupied together with the building in question.
6(1)A building is an agricultural building if it is not a dwelling, is occupied by a person keeping bees, and is used solely in connection with the keeping of those bees.E+W
(2)Sub-paragraphs (4) and (5) of paragraph 5 above apply for the purposes of this paragraph as for those of that.
7(1)A building is an agricultural building if it is not a dwelling and—E+W
(a)it is used in connection with agricultural operations carried on on agricultural land, and
(b)it is occupied by a body corporate any of whose members are [F4or are together with the body] the occupiers of the land[F5, and
(c)the members who are occupiers of the land together have control of the body.]
(2)A building is also an agricultural building if it is not a dwelling and—
(a)it is used in connection with the operations carried on in a building which, or buildings each of which, is used for the keeping or breeding of livestock and is an agricultural building by virtue of paragraph 5 above, and
(b)sub-paragraph (3), (4) or (5) below applies as regards the building first mentioned in this sub-paragraph (the building in question).
[F6(3)This sub-paragraph applies if—
(a)the building in question is occupied by a body corporate any of whose members are, or are together with the body, the occupiers of the building or buildings mentioned in sub-paragraph (2)(a) above, and
(b)the members who are occupiers of the land together have control of the body.]
(4)This sub-paragraph applies if the building in question, and the building or buildings mentioned in sub-paragraph (2)(a) above, are occupied by the same persons.
(5)This sub-paragraph applies if the building in question is occupied by individuals each of whom is appointed by the occupiers of the building or buildings mentioned in sub-paragraph (2)(a) above to manage the use of the building in question and is—
(a)an occupier of part of the building, or of part of one of the buildings, mentioned in sub-paragraph (2)(a) above, or
(b)a member of the board of directors or other governing body of a person who is both a body corporate and an occupier of the building or buildings mentioned in sub-paragraph (2)(a) above.
(6)Sub-paragraph (1) above does not apply unless the use there mentioned, or that use together with the use mentioned in sub-paragraph (2) above, is its sole use.
(7)Sub-paragraph (2) above does not apply unless the use there mentioned, or that use together with the use mentioned in sub-paragraph (1) above, is its sole use.
(8)Sub-paragraph (4) or (5) above does not apply unless the number of occupiers of the building or buildings mentioned in sub-paragraph (2)(a) above is less than 25.
[F7(9)In this paragraph “control” shall be construed in accordance with [F8sections 450 and 451 of the Corporation Tax Act 2010].]
Textual Amendments
F4Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 37(2)
F5Sch. 5 para. 7(1)(c) and words inserted (18.11.2003 for E., 27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 67(3), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8 Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I
F6Sch. 5 para. 7(3) substituted (18.11.2003 for E., 27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 67(4), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8 Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I
F7Sch. 5 para. 7(9) inserted (18.11.2003 for E., 27.11.2003 for W.) by Local Government Act 2003 (c. 26), ss. 67(5), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8 Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I
F8Words in Sch. 5 para. 7(9) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 210 (with Sch. 2)
8(1)In paragraphs 1 and 3 to 7 above “agricultural land” shall be construed in accordance with paragraph 2 above.E+W
(2)In paragraphs 1 and 5(5)(b) above “agricultural building” shall be construed in accordance with paragraphs 3 to 7 above.
(3)In determining for the purposes of paragraphs 3 to 7 above whether a building used in any way is solely so used, no account shall be taken of any time during which it is used in any other way, if that time does not amount to a substantial part of the time during which the building is used.
(4)In paragraphs 2 to 7 above and sub-paragraph (2) above “building” includes a separate part of a building.
(5)In paragraphs 5 and 7 above “livestock” includes any mammal or bird kept for the production of food or wool or for the purpose of its use in the farming of land.