IHTM24123 - Successions: Example of the occupation requirement
Example
In 1970 A purchased Longacre, a farm in Norfolk, which he first
farmed by himself and then from 1975 in partnership with his sons.
A died in June 1989. His partnership interest devolved on
his sons under the terms of the partnership agreement. Longacre
went to his widow for life as part of the residuary estate.
In August 1990, A's widow became a member of the occupying
partnership. In December 1990, she died. She was still a member of
the partnership which had farmed Longacre throughout the period
since A’s death.
A’s widow is treated for the purposes of IHTA84/S117
(a) as having occupied Longacre for the purposes of agriculture
throughout the two year period prior to her death because
- from August 1990 when she became a partner she did so occupy the property,
- under S120(1)(a) she is deemed to have occupied Longacre for the purposes of agriculture from A’s death in June 1989, and
- under sS120(1)(b) she is deemed to have occupied the property for the purpose of agriculture from 1970 to A’s death.
If Longacre were in Scotland, IHTA84/S119 (2) combines with IHTA84/S120 (1) to provide the same result. Though S119(2) does not refer to S120(1), you should apply the approach set out at IHTM24124 in relation to S119(1).
