IHTM25223 - Land and buildings, machinery and
plant: Additional user requirement
IHTA84/S105 (1)(d) requires the land, etc, to have been used for
the purposes of the business concerned only immediately before the
transfer. However under IHTA84/S112 (3) land, etc, is not relevant
business property, and so does not qualify for relief, unless
either
- it was used as set out in IHTA84/S105 (1)(d) (
IHTM25222) throughout the two years
immediately preceding the transfer, or
- it replaced another asset so used, so that such usage of those
assets (and of any other asset replaced by that other asset)
comprised at least two of the preceding five years, or
- where the successive transfer (
IHTM25331) provisions apply, was so
used continuously between the earlier and subsequent transfers
there defined, or throughout the part of that period during which
it was owned by the transferor or his spouse or civil partner, with
adaptation where the asset replaced another asset during that
period.
It is considered that the first test above is satisfied where
land or buildings used wholly or mainly by a business are used by a
company or partnership formed to take over the business,
notwithstanding that its formation was less than two years before
the transfer, provided that the total period of use by the business
extends to two years or more.
