Form

How to fill in schedule D37

Updated 12 August 2024

You cannot claim Business Relief instead of or in addition to Agricultural Relief. If the assets qualify for both, you should only claim Agricultural Relief.

When you should complete this form

You must fill in schedule D37 if you’re deducting Agricultural Relief from some or all of the land included in the transfer. Sending a plan of the property can help HMRC process your form.

You should fill in a separate form for each property.

What you can claim Agricultural relief for

Agricultural property is land or pasture that is used to grow crops or rear animals for food consumption. It also includes buildings that are:

• used alongside the agricultural land or pasture
• farmhouses, cottages and other buildings that are ‘character appropriate’ to the property — they must be proportionate in size and to the nature of the farming activities

Agricultural Relief can be claimed on property if all of the following apply:

• it’s agricultural property
• the property has been owned for either:
  • 2 years and occupied by the transferor or trustee
  • 7 years and occupied by someone else

You do not need to claim relief on the whole property. It can be limited to specific areas of land or buildings.

Find out more about what qualifies for Agricultural Relief for Inheritance Tax.

If the property has not been owned for long enough

You may be able to claim Agricultural Relief if either the:

• transferor inherited the property on the death of another person
• property has replaced other agricultural property

If you think relief may be due, you must tell us why at question 2d.

Check how much relief you can claim

Check the rate of Agricultural Relief for Inheritance Tax.

You should work out the amount of relief due by deducting the relevant percentage from the value of the asset. So, if the property qualifies for 100% relief, you should include the value of the asset in the box 7 of the assets section on the IHT100 series form.

Information you need about each property

You must include the following information about each property.

How the property was acquired

You must tell us when and how the property was acquired. For example, if it was inherited, settled or purchased.

The nature of agricultural activities carried out

You must tell us about the day-to-day agricultural activities that the transferor or trustee carried out. Do not use vague phrases like ‘general farming’.

You should:

• say if it was an arable, pastoral or mixed farm
• describe the type of crops usually grown
• describe the type and numbers of livestock that grazed the land — if it was a variety of livestock, give an estimate of each type and the acreage they used

You may be able to claim Agricultural Relief if the property was managed under an agro-environmental or habitat scheme arrangement.

Who has been occupying the property

Tell us who has been occupying the property throughout the 7 years up to the date of the event.

You should:

• list all the different people who have occupied the land, including the dates of their occupation
• include details about the day-to-day agricultural activities carried out by each occupier
• tell us if the agricultural activity stopped at any time, including when and why this happened

A copy of the lease, tenancy, or other proprietary interest

If the property was let after 31 August 1995, you should tell us when the tenancy started and provide a copy of the tenancy agreement. You can also ignore question 6 and go to straight to question 7.

If the property was let before 1 September 1995, you should include the following details about the letting:

• when the letting started
• how long the property was let for
• what rent was charged
• a copy of the written lease or agreement if there is one

If you think the higher rate of relief is due

You may be able to claim the higher rate of relief for land let before 1 September 1995. The transferor or trustee must have been able to get vacant possession within 24 months of the date of the event. If you’ve answered ‘yes’ to question 6 you must tell us how they were able get vacant possession. For example, if they were a freeholder or a tenancy was coming to an end.

You may also be able to claim the higher rate of relief if all of the following apply:

• the tenancy began before 10 March 1981
• the transferor or trustee has owned the land since before 10 March 1981
• the land would have qualified for full Agricultural Relief under the law at that date
• the transferor did not have the right to vacant possession between the 10 March 1981 and the date of the event

Details about any farmhouse and buildings

Agricultural Relief is only available for property that is occupied for the purposes of agriculture.

You must include the following information for each building:

• who lived there at the date of the event and how long for
• the type of tenancy, for example agricultural tenancy or assured shorthold tenancy
• how much rent was paid
• why the occupier lived there
• why you consider the house or cottage to be ‘character appropriate’ to the agricultural property

If the property has been sold

You cannot claim Agricultural Relief if, at the date of the event, all of the following apply:

• some or all of the property was subject to a binding contract for sale
• contracts had been exchanged (or in Scotland, when missives have been concluded)
• the sale had not been completed

You should include details of the sale and clearly identify the part of the property that was sold on the plan.

What happens next

You should use the figures in this schedule to help you fill in the IHT100 series form.

You must send this form alongside the completed IHT100 series form. Make sure you include copies of any documents we’ve asked for.

Get help 

You should contact the Inheritance Tax helpline if you need help completing this form.