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

Chapter IHTM24180

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM24180
CourtHM Revenue & Customs

Where the conditions (IHTM24173) are satisfied for only part of the gifted property, you should reduce a proportionate part of the value transferred to calculate the relief due, IHTA84/S124A (5). Where the conditions are not satisfied at all, the consequences depend on whether the transfer is a failed PET (IHTM04057) or an immediately chargeable transfer (IHTM04067).

Failed PET

When the conditions are not satisfied, the effect of IHTA84/S124A (1) is that in working out the tax payable on the transfer and establishing the transferor’s cumulative total, the value transferred by the PET is ascertained on the basis that agricultural relief is not due.

Consequently, IHTA84/S114 (1) does not mean that business relief cannot be deducted instead, if the conditions for that relief are satisfied. This means that the transfer must have qualified for business relief at the time it was made and the additional conditions (IHTM25121) relevant to business relief are satisfied at the death of the transferor. This may apply where the gift was of a farming business, including the farmland, and the transferee

  • retains the land, but changes the business carried on to something other than farming, or
  • sells the business including the land and uses the whole of the proceeds to purchase a non-farming business.
Immediately chargeable transfer

When the conditions are...

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