IHTM24123 - Successions: Example of the occupation requirement

Example

In 1970 A purchased Longacre, a farm in Norfolk, which he first farmed by himself and then from 1975 in partnership with his sons.

A died in June 1989. His partnership interest devolved on his sons under the terms of the partnership agreement. Longacre went to his widow for life as part of the residuary estate.

In August 1990, A’s widow became a member of the occupying partnership. In December 1990, she died. She was still a member of the partnership which had farmed Longacre throughout the period since A’s death.

A’s widow is treated for the purposes of IHTA84/S117 (a) as having occupied Longacre for the purposes of agriculture throughout the two year period before her death because

• from August 1990 when she became a partner she did occupy the property,
• under S120(1)(a) she is deemed to have occupied Longacre for the purposes of agriculture from A’s death in June 1989, and
• under sS120(1)(b) she is deemed to have occupied the property for the purpose of agriculture from 1970 to A’s death.

If Longacre were in Scotland, IHTA84/S119 (2) combines with IHTA84/S120 (1) to provide the same result. Though S119(2) does not refer to S120(1), you should apply the approach set out at IHTM24124 in relation to S119(1).