IHTM23172 - Special valuation matters: agricultural relief claimed on the land

Where agricultural relief (IHTM24001) has been claimed you should determine whether the relief is due before you refer the papers to the VOA (IHTM23002).

Any request from the VOA for a ruling involving a house, cottage or buildings owned by the deceased and appropriate to land the deceased occupied as a tenant should be referred to Litigation via your Team Leader.

When referring the land to the VOA on which relief appears to be due, complete the appropriate box) on VOA 2. The VOA will then report in the terms

‘The basis of valuation (item ……) is appropriate for 100% (or 50%) relief.’ (50% or 30% if the date of transfer is before 10 March 1992.)

Notwithstanding that the VOA may report the basis of valuation as appropriate for 50% relief (or 30% before 10 March 1992), relief at the higher rate of 100% (or 50%) may be due if the conditions for transitional relief (IHTM24145) are satisfied.

If 100% agricultural relief is claimed you should proceed as follows

  • Where you are satisfied that the conditions (IHTM24011) for 100% relief are met, send a VOA 3with your reference to the VOA asking them to confirm whether the agricultural value (IHTM24150) of the property is the same as the open market value and saying that no valuation is required if they so confirm.
  • It is important not to waste time on unnecessary valuation exercises. If the taxpayer fails to respond fairly promptly to enquiries aimed at establishing whether 100% relief is due, you should spell out to them the consequence in terms of likely delay in settling the tax position.

Where agricultural property (IHTM24030) owned by the deceased is occupied by a partnership (IHTM23171) you should follow the instructions relating to that occurrence before reference to the VOA is made.