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Chapter IHTM24011

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM24011
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

For a transfer to attract agricultural relief

  • it must be attributable, at least in part, to the agricultural value (IHTM24150) of agricultural property that is situated in the United Kingdom, Channels Islands or Isle of Man or a state other than the United Kingdom which is within the European Economic Area (IHTM24256) at the time of the transfer of value IHTA84/S115 (5),
  • the agricultural property must not be subject to a binding contract for sale (IHTM24040)
  • the ownership (IHTM24100) or occupation (IHTM24070) conditions must be satisfied,

If the transfer of value is a failed PET (IHTM14512) the additional conditions (IHTM24172) must also be satisfied to calculate

  • the value transferred, and.
  • (for immediately chargeable transfers) the additional tax payable because of the transferor’s death within seven years of the transfer (IHTM14571).

When tax is charged under the GWR provisions (IHTM24200) there are additional conditions that must be met for agricultural relief to apply. The conditions are there to prevent exploitation of the relief by a person switching their assets into agricultural property shortly before death or making a transfer. However, to prevent the conditions from operating unfairly they are relaxed in three types of situation. These are:

  • where the property transferred replaced other relievable property, IHTA84/S118 (IHTM24110)
  • where the transferor became entitled...

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