IHTM24161 – The District Valuer: general issues
Summary
Before you can refer property on which Agricultural Relief
has been claimed to the DV, you need to consider the following
issues:-
- Is all the property ’occupied for the purposes of agriculture?’ ( IHTM24060) IHTA84/S117
- What rate of relief ( IHTM24140) is applicable?
- If any property would fail to qualify for AR, would it qualify for business relief (IHTM25130) instead and, if so, at what rate? ( IHTM25151)
- Does all of the property qualify as “agricultural property”?( IHTM24030)” IHTA84/S115 (2)
- If the property qualifies for AR, what is the agricultural value ( IHTM24150) of the agricultural property? IHTA/S115 (3)
Please remember…
It is our responsibility to consider questions about the
eligibility to AR, although the DV will often be able to provide
helpful information and advice, particularly in relation to the
last two points above.
You should consider the deduction for agricultural relief
thoroughly before you make your referral to the DV.
In handling AR issues of a more complex nature, you should
seek advice first of from members of their own teams, particularly
those with more experience, as they may have encountered the issue
before.
Please also remember that you can always get advice from TG
on handling AR issues You can have an informal chat or make a
formal referral.
If, after receiving replies to your initial enquiries
regarding a claim for agricultural relief, you need to ask the
parties for more information, you should let the parties know that
the DV will be consulted when you are satisfied that you have
enough information regarding the claim to make the appropriate
referral.
If you become aware that the property is about to be sold,
or improvements are about to be made post-death and before the DV
has had a chance to inspect the property, it may be sensible to
refer our papers to the DV even if the question of occupation for
agricultural purposes has not yet been fully resolved. You will
need to make this clear to the DV by means of a covering memo. The
further information can then be sent when it has been obtained.
If you have a complicated claim for relief and you are
unsure if you have enough information to make a referral to the DV,
you can always have an informal chat with a member of TG, or other
specialist, who will advise whether or not a referral to the DV is
appropriate at that stage. The DV may also be able to comment on
the extent of agricultural operations being carried out on the land
if there is doubt about this. For example, you may wish to ask the
DV to confirm that all the farm buildings said to be occupied for
the purposes of agriculture (
IHTM24060) were so occupied. But, you
must remember that it is your responsibility to decide whether or
not IHTA84/S117 is satisfied.
Sub-threshold estates
Where the estate is sub-threshold because of the relief
claimed, but may become chargeable if some or .all the relief is
denied you will need to make this clear to the DV You should
indicate the amount of relief that would need to be denied in order
to make the estate tax-paying. If appropriate, you should ask the
DV for informal or ‘does not exceed’ values to see if
the matter is worth pursuit. Bear in mind also the potential tax at
stake. If the amount is small you will need to consider in
conjunction with
IHTM23082.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
