A Deceased farmer gave away various parcels of land many years before his death. He was a partner in the family business which farmed the gifted land and which he received an income. I have had differing opinions from colleagues about whether the gifts would be classed as GROBs and I would appreciate your thoughts.
More information would be needed in order to comment. What was the original holding of farm land and what and when were parts given away and to whom?
Did the farmer continue to use the land himself and can this be proved?
It could well be a GROB. Presumably the deceased was a partner at the time of the gift and remained so thereafter. To avoid reservation of benefit, the donor should reduce his partnership share at the time of the gift, but there could still be room for argument as to whether the adjusted profit shares were sufficient to avoid the GROB.
Even if it was a share in the land which was given so that FA 1986 s102B applies, there is still the condition to be satisfied that the donee does not provide a benefit at his/her expense.
Fortunately in most cases FA 1986 Sched 20 para 8 solves the problem by allowing APR on the death thus preventing any charge on the GROB.