Where agricultural property (
IHTM24030) is transferred at a time
when it is subject to a binding contract for sale, agricultural
relief is not due unless the sale is to a company and is made
wholly or mainly in consideration of shares or securities which
will give the vendor control of that company, IHTA84/S124 (1).
Where the property transferred is a shareholding that is
subject to a binding contract for sale, relief is
not due unless the sale is made for the purposes
of reconstruction or amalgamation, IHTA84/S124 (2).
Buts, where a transferor enters into a binding contract for
sale of agricultural property for less than full consideration and
that transaction itself gives rise to a claim for tax, that claim
may qualify for relief. Subject to other statutory conditions being
satisfied, relief is available on the net value transferred. This
normally the open market value of the agricultural property less
the price paid.
Where a lifetime transfer (other than a PET (
IHTM04057)) is made shortly before a
sale, you should investigate the circumstances of the transfer (
IHTM14832) to ensure the relief is
properly due.
The fact that the property is subject to an unexercised
trust for sale, does not prevent it qualifying for
relief.
