fa75/sch8/para1.- Finance Act 1975 Schedule 8 Relief for Agricultural Property Part I

1. - (1) Where the value transferred by a chargeable transfer is determined by reference to the value of agricultural property in the United Kingdom and the conditions stated in paragraph 3 below are satisfied, then, if -

[(a) the value transferred would be reduced if computed in accordance with paragraph 2 below; and ² ]

(b) a person liable to pay the whole or part of the tax on the value transferred makes a claim on that behalf to the Board within two years of the transfer or such longer time as the Board may allow;

the value transferred shall be [computed in accordance with paragraph 2 below ³ ] and tax shall be chargeable accordingly, but subject to the limit imposed by paragraph 5 below.

(2) The conditions stated in paragraph 3 below shall be deemed to be satisfied with respect to a transfer of value (in this sub-paragraph referred to as the current transfer) if - `

(a) not more than two years before the current transfer there was (or would have been had this Act then been in force) a transfer of value [and either that transfer or the current transfer was or would have been a transfer made on death ⁴ ]; and

(b) the value transferred by the earlier transfer was or would have been determined by reference to the value of the same agricultural property as in the case of the current transfer; and

(c) the conditions stated in paragraph 3 below were or would have been satisfied with respect to the earlier transfer; and

(d) the agricultural property was, at the time of the current transfer, occupied for the purposes of agriculture by the transferor or by the personal representatives of the person who was or would have been the transferor in relation to the earlier transfer; [and

(e) the agricultural property became, through the earlier transfer, the property of the person or of the spouse of the person who is the transferor in relation to the current transfer.

(2A) Where, by virtue of sub-paragraph (2) above, the conditions stated in paragraph 3 below are deemed to be satisfied but, under the earlier transfer mentioned in that sub-paragraph, the amount of the value transferred which was attributable to the agricultural property was part only of the value of that property, a like part of its agricultural value shall be substituted for the agricultural value of the property in ascertaining the part eligible for relief under paragraph 2 below. ⁴ ]

(3) In the following provisions of this Part of this Schedule "the unreduced value", in relation to a chargeable transfer, means the value transferred, calculated before the reduction and as if no tax were chargeable on it.

1 Repealed by 1981 s.96(3) and Sch. 19, Part IX in relation to transfers of value, distribution payments and capital distributions made on or after 10 March 1981. However, in view of the transitional relief under 1981 s.96 and Sch. 14, reference to these repealed provisions may be necessary.

2 Repealed by 1976 s.74(2) and Sch. 15 Part V, in relation to chargeable transfers made on or after 7 April 1976.

3 1976 s.74(2), in relation to chargeable transfers made on or after 7 April 1976. Originally "so computed".

4 1976 s.74(3), in relation to chargeable transfers made on or after 29 July 1976.