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?
Graham and Rosen