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Chapter IHTM24068

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM24068
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

IHTA84/S115 (4) provides that, for the purposes of agricultural relief, agriculture may be taken to include the breeding and rearing of horses on a stud farm and the grazing of horses in connection with those activities, and any buildings used in connection with those activities may be regarded as farm buildings.

  • One difficulty is that there is no definition in the Act of what constitutes a stud farm, but it is considered that an essential requirement is for an element of horse breeding carried on in a systematic manner, with proper record keeping.

You should usually decide whether a stud farm qualifies for agricultural relief by looking at

  • the information on the file,
  • other HMRC sources, such as the tax papers for the business or SAV (Livestock).
  • business accounts for the 5 years before the death

In arriving at your decision you should consider aspects such as:

  • the age of the deceased both at death and when the farm was acquired
  • the length of the period of ownership
  • the number of horses held at the date of death and the breeding record in recent years
  • details of advertising and publicity for the stud, plus full particulars of sales
  • accounts of the enterprise, and details of...

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