Her Majesty’s Revenue and Customs seldom offer 100% relief but when they do it is worth knowing how to qualify. Agricultural Property Relief (APR) on Inheritance Tax is generally understood to be available to farmers but what is less commonly known is that APR can be a useful inheritance tax planning tool for many not directly involved in farming themselves.
APR does only apply to agricultural property but you don’t have to be actually tilling the soil yourself to qualify for 100% IHT tax relief. Providing you have owned the land for 7 years and it is used for agricultural purposes it can be let to a farmer to manage. For farmers, it is of critical importance that they understand the criteria for qualification.
If you are investing in farmland or you would like to discuss the inheritance issues concerning farmland then Richard Pinney at Mogers Drewett looks forward to hearing from you.