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Chapter IHTM24001

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM24001
CourtHM Revenue & Customs

Essentially, agricultural relief is available on the:-

  • agricultural value, IHTA84/S115(3) (IHTM24150) of
  • agricultural property, IHTA84/S115(2) (IHTM24030 to IHTM24039)
  • owned (IHTM24100) and occupied (IHTM24070) for the purposes of agriculture. IHTA84/S117, for the required period (IHTM24071).

Section 116(1) of the IHTA84 states that ‘agricultural relief is due to the extent that the value transferred by a transfer of value (IHTM04024) is attributable to the agricultural value (IHTM24150) of agricultural property ’(IHTM24030). In this case, transfer of value has its extended meaning under IHTA84/S3 (4), so the relief is available on deemed transfers of value (IHTM04025).

The relief is also available on discretionary trusts under IHTA84/S115 (1), under which a transfer of value includes an occasion on which tax is chargeable on discretionary trusts (IHTM04096) and references to the value transferred by a transfer of value’ and ‘the transferor’ will include, respectively:

  • the amount on which tax is then chargeable
  • the trustees of the settlement concerned.

The relief is not available on other occasions of charge, such as when conditionally exempt property is subject to a recapture charge (IHTM04112).

The relief is given by a percentage reduction (IHTM24140) in the value transferred by the transfer of value. This means that the relief is

  • allowed before the deduction of exemptions, (IHTM04022) or
  • given before any deduction is allowed under IHTA84/S165 for other tax borne by the donee (IHTM14013), and
  • calculated before any...

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