Chapter IHTM24165
| Published date | 20 March 2016 |
| Record Number | IHTM24165 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
The role of the DV is to agree the agricultural value (IHTM24150) and in cases where, the property has value for development or value for other non agricultural uses or there is an attractive farmhouse in a location that would appeal to non-farming purchasers the DV will also agree an open market value for the property.
As described in IHTM24161, the DV can provide informal advice on occupation for the purposes of agriculture (IHTM24070). If by inspection, local knowledge, or on the basis of information provided by the parties, the DV has doubts as to whether or not part, or the whole, of the property was occupied for the purposes of agriculture (IHTM24070), the DV will let you know immediately and await further instructions. This scenario is most likely to occur in the context of barns and other farm buildings, where the information provided by the parties suggests that there has been an agricultural element to the occupation but inspection suggests no recent use.
The DV will also let you know if there is any information that casts doubt on the rate (IHTM24140) of AR deducted by the taxpayers or their agents or the availability of business relief (IHTM25131).
If all the property on which AR has been claimed qualifies as agricultural property (IHTM24030) the DV will proceed to consider any valuations required. If the DV considers that any property on which AR has been claimed does not qualify as agricultural property (IHTM24030) then an Interim (IHTM24164) AR Report will be sent to you.
The interim report will contain the following details.
- The identity of any doubtful property
- The DV’s opinion of Agricultural Value and Market Value
- Brief reasons for any doubts about eligibility: where ’character appropriate’ is the issue, an indication of extent of ineligibility For instance a farmhouse is not ’appropriate’ to a holding of 150 hectares, but would/might be to one of 250 hectares
- Any assumptions the DV has made in arriving at the initial view. This should include confirmation of the size of the holding on which the view is based
- Any other factors that the DV considers are relevant to eligibility
- The DV will attach any descriptive valuation material obtained directly from taxpayer or agent that we are unlikely to have seen
- Photographs of the items of property concerned.
Any further action by the DV on either the question of whether the property qualifies as agricultural property (IHTM24030) or considering the agricultural value (IHTM24150) of...
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