IHTM24307 - Environmental Management Agreements: AR after the end of a qualifying agreement
Most Environmental Management (EM) agreements will be for a fixed period, and these can vary in length from a few years to several decades.
Provided the land and property had been subject to a qualifying EM agreement the ending of the scheme does not necessarily mean that the land and property will no longer qualify for Agricultural Relief (AR).
If the land is returned to agricultural use, it will still qualify provided that the combined periods of occupation and ownership for the purposes of a qualifying EM agreement and agriculture exceed the periods of 2 and/or 7 years respectively as provided for in IHTA84/S117 (IHTM24304).
Furthermore, IHTA84/S124C does not require the qualifying agreement to still be in place at the date of transfer or death. IHTA84/S124C(1)(b) and (2) both refer to the use and management of the land in accordance with the agreement, whether or not the agreement is still in place. The property will also be valued as if the property were subject to a perpetual covenant prohibiting its use otherwise in accordance with the agreement, again whether or not the agreement is still in place (IHTM24305).
You are unlikely to see this scenario in the first years after the implementation of IHTA84/S124C from 6 April 2025 but if you do, you should ask for a copy of the agreement together with details of how and in what way the land continues to be managed in accordance with the terms of the agreement.