IHTM24014 - Overview of agricultural relief: Reviewing the information
Once you have collected all the information available, you will need to consider each element of the property separately. Remember that agricultural relief is not available unless the property includes agricultural land (IHTM24031) that is occupied for agricultural purposes (IHTM24060). Once you have established that you have qualifying agricultural land, you can then look at each of
- the farmhouse, (IHTM24036)
- farm buildings, (IHTM24035)
- farm cottages, (IHTM24034)
- woodland (IHTM24032)
- any other elements
You should check that each satisfies the requirement that it is qualifying agricultural property (IHTM24030) occupied for the purposes of agriculture. When you are satisfied that these criteria have been met you can then
- confirm the appropriate occupation (IHTM24070) or ownership (IHTM24100) conditions are met.
- confirm the property was not subject to a binding contract for sale (IHTM24040) at the date of death/transfer
- and finally, establish the rate of relief due (IHTM24140)
Remember that business relief (IHTM25131) might be available on some elements of the property even if agricultural relief is not. If you think this might be the case, investigate whether the requirements for business relief to apply are met without giving a view on whether the use of the property is an agricultural purpose.
The entitlement to relief may not be straightforward. There are detailed and sometimes complex provisions designed to allow relief where, for example, property has replaced other property, or where the deceased/transferor has only recently inherited it. Where relief does not appear to be due at first, you may need to ask precise and detailed questions to find out whether the relief is due through another route.
In cases where relief appears to be due at 100%, it is important to keep your enquiries focused and the amount of work down to the minimum as there may be no tax liability for property that fully qualifies for the relief.