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United Kingdom

UK IHT: APR and BPR on mixed-use farm involving sole-trader livestock land and a partnership poultry house; eligibility of land and buildings, ancillary occupation test and relief prioritisation

Published on: 23 October 2024

Published by a LexisNexis Private Client expert
Legal News
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A deceased individual held agricultural land in their sole name, used for sheep and cattle farming as a sole trader. They were also a partner with their spouse in a partnership operating a poultry farming business. The partnership owned no land, but among its assets was a poultry house situated on part of the agricultural land. The bulk of the land was employed in the deceased’s sole trader sheep and cattle enterprise. There was no formal arrangement covering the poultry house’s use of the land.

Can agricultural property relief be claimed on all the land (including the area occupied by the poultry house) and business property relief on the partnership (encompassing the poultry house)? For broad guidance on agricultural property relief (APR) and business property relief (BPR) and the qualifying criteria for each, see Practice Notes: IHT—agricultural property relief and IHT—business property relief. APR is available on the agricultural value of land and property; that is, on individual assets. BPR is available on the value of a business as a whole. Some property may qualify only for APR, while other property may qualify only for BPR...

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