Agricultural Property Relief
When determining the value of an estate’s assets and how much inheritance tax is due you, or your executors may be able to claim Agricultural Property Relief which reduces the value of agricultural land or pasture by either 100% or 50% so long as it was occupied by the owner for the purposes of agricultural for at least two years up to the transfer/death; or, in the case of tenanted land it was owned for at least seven years up to the transfer/death and used for agricultural purposes during that time. Farm buildings, the farm house and woodland can also qualify subject to certain conditions.
The following assets do not qualify for agricultural property relief :
- farm equipment and machinery
- harvested crops
- derelict buildings that is, buildings no longer capable of being used for agricultural purposes
- property for sale for which contracts have been exchanged