IHTM30213 - Transfers on death: land

Land of any description, wherever situated, is qualifying property for instalments.

However, the instalments are interest free ( IHTM30363) only to the extent that the land:

• is reflected in the value transferred by the transfer of a business or an interest in a business

or

• its value is reduced by Agricultural Relief (AR) ( IHTM24000).

Otherwise the instalments are not interest free.

Business relief (BR)

Land which qualifies for BR ( IHTM25131) does not necessarily qualify for interest free instalments. Whether the instalments are interest free depends on the paragraph of IHTA84/S105 (1) under which the land qualifies for BR:

• if the land (including settled land) qualifies for BR on the transfer under IHTA84/S105 (1)(a), the instalments are interest free

but

• if the land qualifies for BR only under IHTA84/S105 (1)(d) or (e), the instalments are not interest free.

Agricultural property

Note that agricultural property ( IHTM24030) qualifies for interest free instalments only to the extent that:

• its value is reduced by AR

or

• it is reflected in the value transferred by the transfer of a business or an interest in a business.

Growing crops

There are separate instructions for the treatment of growing crops ( IHTM24051).

Milk quotas

Where a milk quota has been valued in effect as part of the land and AR allowed on the combined value, interest free instalments should be allowed on the same basis.