SVM112010 - IHT Agricultural
Property Relief: Introduction
The legislation governing Agricultural Relief (AR) is contained
in ss.115 to 124B (inclusive) IHTA 1984. AR is due to the extent
that the value transferred by a transfer of value is attributable
to the agricultural value of agricultural property.
The relief is extended to shares or securities of a company
if the following conditions are satisfied;
- The shares or securities gave the transferor control of the
company immediately before the transfer (see
- The agricultural property formed part of the company's assets
and part of the value of the shares or securities can be attributed
to the agricultural value of that property (see
- The company satisfied the occupation/ownership tests in
relation to the agricultural property (see
SVM112060 et seq.).
- The transferor satisfied the ownership requirement in relation
to the shares or securities (see
- The shares or securities were not subject to a binding contract
for sale at the time of the transfer (see
All these conditions have to be satisfied.
There are additional conditions which have to be satisfied for
the purposes of calculating
- the value transferred by a potentially
exempt transfer (PET) that becomes chargeable.
- for all other chargeable transfers after
17 March 1986, the additional tax payable because of the
transferor's death within seven years of the transfer.
Details of the conditions appear at
Relevant property trusts
S.115(1) - In the case of non-interest in possession
(discretionary) settlements and, on or after 22 March 2006, all
settlements which are subject to ten yearly and exit charges,
references in the agricultural relief provisions to the
"transferor" should be taken as references to the trustees of the
settlement and references to "the transfer" as references to the
occasion of charge.