IHTM24305 - Environmental Management Agreements: Agricultural value
As with all property qualifying for agricultural relief, relief for property managed under a qualifying environmental management (EM) agreement will be given by reference to its agricultural value, rather than its open market value (IHTM24150).
The usual definition of agricultural value found in IHTA84/S115 (3) is modified for the purposes of property subject to an EM agreement by IHTA84/S124C (4). It states that the ‘agricultural value’ is to be taken to be the value of the property if it was subject to a perpetual covenant prohibiting its use otherwise than in accordance with the EM agreement (whether or not the agreement is still in place).
The provisions of IHTA84/S124C (4) will only apply if S115(3) does not. So, for example, if the deceased continued to occupy land for agricultural purposes while also claiming payments under the Sustainable Farm Incentive (SFI), the agricultural value of the land and other property occupied with it should be ascertained in accordance with S115 (3).
Assessment of agricultural value is performed by the Valuation Office Agency (IHTM24160).