Chapter IHTM24255

Published date20 March 2016
Record NumberIHTM24255
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Form IHT414 is one of the Schedules to form IHT400 and provides information to support the deduction of agricultural relief on death. (The Form D37 is for use with lifetime transfers other than those to which questions 17 to 20 on the Form IHT414 refer) The form is designed to obtain the information you need to establish whether agricultural relief is available in straightforward cases. The information it contains may also point to areas where further enquiries will be necessary.

Question 1

Identifies the property on which the relief is deducted. You should look at the description of the property and make sure that it agrees with any plan and professional valuation that may have been sent. Might you need separate completed forms for different elements of the property? Can you clearly identify all parts of the property concerned on the plan and valuation?

You will need a plan of the land before the papers can be sent to the District Valuer (IHTM24160)

Question 2

Asks when and in what circumstances the property was acquired. The date of acquisition should allow you to decide whether the ownership requirement in s.117 IHTA 1984 (IHTM24101) is satisfied. Where property has been acquired by gift or inheritance it may be that it has been the subject of a previous chargeable event for IHT purposes on which the availability of relief was considered. If so you should obtain any related files held by the office.

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Question 3

Agricultural relief is not normally available for property that is subject to a binding contract for sale at the date of death (IHTM24040). The answer to this question should enable you to identify any land concerned and where appropriate restrict relief accordingly.

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Question 4

A successful application for planning permission in respect of agricultural property may be an indicator of a market value in excess of an agricultural value. Whether any excess value qualifies for business relief, and if so at what rate, will depend on the circumstances of each case. Where the consent relates to such things as the conversion of an existing agricultural building to residential use, the removal of an agricultural occupancy restriction or to the change of use of agricultural land it may be appropriate to establish to what extent the subject property was actually being used for agricultural purposes immediately before the death.

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Question 5

This question is designed to elicit some fairly precise details of the nature and...

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