Asset Wealth Preservation
Asset Wealth Preservation

Agricultural Property Relief

Agricultural property relief 

 

If you own a farm, then you can get 100% IHT relief,

if it meets various conditions.

These are that:

• you have the right to vacant possession of the property or the right to obtain it within the next twelve months, or

• the land is let on a grazing licence, or

• the property is let on a tenancy beginning on or after 1 September 1995

 

In addition, you must have occupied the property for at least two years or, alternatively, owned the property for seven years and throughout that period it has been used for agricultural purposes.

 

The agricultural property must be located in the UK,Channel Islands, Isle of Man or European EconomicArea and includes:

• farmhouses, cottages or buildings, which are of

a character appropriate to the property

• woodlands and buildings used for livestock

• growing crops included with the land

• stud farms engaged in the breeding and rearing

of horses

• land and buildings used in the cultivation of short

rotation coppice

• any land within a habitat scheme

 

Please note that if the farm buildings have a lifestyle value, for example a farm cottage could be sold as a second home, that additional value will not attract agricultural relief.

 

Business property relief

If you own a business, then you can get 100% IHT

relief if it meets various conditions, and if you own

assets that you use in your business, you can get 50%

IHT relief.

The eligible assets, and the rate of tax relief, are

as follows:

• A business or interest in a business – 100%

• An interest in a business partnership – 100%

• A holding of shares in an unquoted company – 100%

• A controlling interest in a quoted company

(more than 50% of the voting rights) – 50%

• Land, buildings or plant and machinery used

in a business – 50%

Business property does not qualify for the tax relief

unless you have owned it for at least two years and

it must be used exclusively for the purposes of the

business.

Asset Wealth Preservation

54 Park Avenue  
Oswestry

Shropshire

SY11 1BA

 

Tel: 01691 652233

Mob. 07711136660

E-mail:

Paul.humphreys@asset-wealth-preservation.co.uk

 

Or use our contact form.

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