By Extra-Statutory Concession F17 dated 13 February 1995 (ESC F17), which continued our existing practice, the higher (vacant possession) rate applies to let land if the deceased's/transferor’s interest in the property either
Generally a notice to quit an agricultural tenancy is invalid if
it claims to terminate the tenancy before the expiration of twelve
months from the end of the current year of tenancy. If an
unchallenged notice to quit had been served shortly after the
beginning of the current year of tenancy, the tenant would have
well nigh two years before he left. Where a tax charge arose in
respect of the landlord’s interest in the land in such
circumstances after service of notice to quit, it would not be
appropriate to deny relief at the higher (vacant possession) rate
simply because vacant possession could not be obtained within
twelve months, as the value of the landlord's interest would not be
significantly less than the full vacant possession value.
This part of the concession will
only apply when an unchallenged notice to quit had
been served
prior to the date of death/transfer. Where a 1986
Act or a 1991 Act tenancy is still in existence at the date of
transfer, the rate of relief remains at the lower rate, see
IHTM24230 for further details.
The second part of the extra-statutory concession applies where the deceased/transferor and tenant are so closely connected that in practice the open-market value of the property is broadly the same as its value with vacant possession, for example, where the property is let to a company controlled by the deceased/transferor. A valuation on this basis is sometimes known as a package valuation. ( IHTM23202)
