IHTM24015 - Overview of agricultural relief: Sole farming businesses

You should establish details of occupation ( IHTM24070) and ownership ( IHTM24100) from the information provided.

If the deceased had been actively farming their land for the relevant period (as opposed to making it available for others to farm) then business relief ( IHTM26001) will be available for any non-agricultural or development value ( IHTM24151) of the land and the farm buildings used.

However, you should pay careful attention to claims for 100% relief for farmhouses and cottages. You should ask yourself

• Was the farmhouse ( IHTM24091) the centre of the farming operations conducted on the land?
• Was the farmhouse or any cottage truly occupied for agricultural purposes?
• Are the farmhouse and any cottages of a character appropriate to the land involved in the business? ( IHTM24050)

Relief is not available in respect of development value or residential premium ( IHTM24151) over and above the agricultural value of farmhouses because the primary function of the house is as a residence.

Once you have established the facts you should consider carefully any doubtful cases, such as those where the deceased appeared to be no more than an agricultural landlord, or a cottage appears to be occupied subject to a protected tenancy.