My client’s wife gifted her half share of the farm to her husband and died shortly afterwards. He now wants to prepare a Deed of Variation giving her half share to his children but I’m not sure if he’ll qualify for APR.
My understanding is that agricultural property gifted to a spouse does not carry the same deemed continuous ownership given to a legacy on death, ie he would obtain APR if he personally owns the land for 7 years after the transfer or 2 years if he farms it personally. However, if he’s a partner in the farm and has been for more than 2 years the ownership period is satisfied immediately.
My issue is that there is a farming tenancy and has been for some years so I don’t think we can say the ownership period is satisfied immediately and he would need to own the land for 7 years after the transfer.
Is this correct?
Many thanks in advance.