Agricultural Relief


(Lisa Nurse) #1

A shareholder who had control of the company transferred an asset (a farm) in his company which qualified for Agricultural Property Relief (at the time) in settlement of his shares under a reorganisation.

Does the gift qualify for agricultural relief on his death?

Under Section 119 IHTA 1984 the gift satisfies occupation because ‘agricultural land owned by a company controlled by the transferor is classed as being occupied personally by the transferor for APR purposes’

What about the ownership rule? The legislation is not clear. Clearly the deceased did not own the farm personally and just had beneficial entitlement by way of shares in the company.

Does anyone know the position please?

Lisa Nurse
Graham and Rosen


(malcolm.gunn) #2

I think it would be helpful for us to have a clear understanding of the transactions which took place. Did the company own the land at the time of transfer, and if so what transfer took place and what was the background to it? There is also a reference to a gift which I am not clear about. With some clarification on these points I am sure contributors to the Forum will be able to help.

Malcolm Gunn

M B Gunn & Co Ltd