IHTM24016 - Overview of agricultural relief: Farming partnerships
For deaths before 6 April 2026 you will not normally need to investigate land and tenancies owned by a partnership and used in the business as either 100% agricultural or business relief (IHTM26002) will usually apply but you may need to do so in some cases from this date, particularly where the value of relievable property exceeds £2.5m (IHTM25500).
However, if a deduction is made against the deceased’s personal estate, for a partnership that was in deficit you may need to value the partnership assets to make sure the deduction being claimed is correct. For example, a partnership tenancy will probably not have been included when it does have some value. Obtaining the correct value for the tenancy will reduce the deficit, which will in turn reduce the deduction against the personal estate.
Potentially exempt transfers (IHTM04057) of partnership capital which included land need not be investigated if they were made before 30 October 2024 unless there are doubts that the donees retained the gifted land through to the deceased’s death. But you may need to do so when the transfer was made on or after this date and the transferor died on or after 6 April 2026 given the restriction in the amount of 100% relief that will be available.