Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Chapter IHTM24111

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM24111
CourtHM Revenue & Customs

The following example shows how the replacement provisions operate.

Example

In 1981, A purchased Blackacre as an investment. Blackacre was farmed by a tenant, X. A had not previously owned any agricultural property.

In 1986, A died. By Will, the residue of his estate was left to his spouse for life. After A’s estate had been fully administered, Blackacre was part of the residuary trust fund.

Blackacre did not qualify for relief on A’s death because A did not occupy the property and had not owned it for seven year test to be satisfied.

In 1989, the trustees sold Blackacre, which throughout had been farmed by X.

In 1990, the trustees purchased Whiteacre, which was farmed by a tenant, Y.

In 1991, A’s spouse died. Whiteacre was still farmed by Y.

Under IHTA84/S118 (2) the seven year ownership test in IHTA84/S117 (b) will be treated as satisfied on the spouse’s death in 1991 if Whiteacre and Blackacre were owned (and occupied for the purposes of agriculture) for periods totalling at least seven out of the last ten years before the death.

A’s spouse cannot directly satisfy that requirement, as she has only owned the property herself since 1986. However under IHTA84/S120 (1), for the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT