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Author Topic: Agricultural relief on land for inheritance tax pourposes  (Read 172 times)


  • Joined Aug 2014
Agricultural relief on land for inheritance tax pourposes
« on: January 11, 2017, 10:05:28 pm »
I am about to embark on sorting out probate on my deceased fathers estate.He gave  me some land 5 years ago valued at 25.000 as a gift.There is a tapering 5 years 16% of 25.000 needs to be paid.Should I take the hit or go for agricultural relief.I have filled the forms in and the land seems to qualify (farmhouses are difficult)..but I have been told the revenue takes months to make a decision and this could delay probate.Would the revenue start pestering me for tax returns in the at the moment I only rent it out for sheep and never make any money out of it after all bills have been paid
Has anyone any recent experience.?


  • Joined Jul 2013
Re: Agricultural relief on land for inheritance tax pourposes
« Reply #1 on: January 15, 2017, 10:39:19 pm »
If agricultural property relief APR (or as an alternative, business property relief BPR) may apply to the gift, you should claim it when you send in the inheritance tax forms prior to the probate application.  It will not hold up probate, so go ahead.

HMRC may raise queries about the APR/BPR claim in due course, so you can't distribute the estate until any queries have been addressed and IHT clearance has been issued.  However, in the meantime you will have been able to obtain probate and deal with estate assets and liabilities of the estate.

IF APR or BPR applies to the gift at 100%, you will not have to pay any IHT and the gift will not be taken into account in calculating the IHT (if any) payable on your father's estate.

If HMRC does not allow the claim for APR (or BPR) you (as recipient of the gift) would only be liable for tax if the gift took your father's total gifts to more than £325,000 in the last 7 years before his death.  The rate of tax on the first £325,000 of gifts is 0%, so if the gift of land to you was the only significant gift he made in the last 7 years of his life, the rate of tax on that gift would be 0% and you will not be liable for any tax.  However, the gift will have used up a small amount of his nil rate band and so will slightly increase the amount of tax payable on his estate.

Taper relief is only relevant if the gift to you is taxable at 40% (ie not at 0%) as this relief operates to reduce the rate of tax, not the value of the gift.


  • Joined Jan 2010
    • Allt Y Coed Farm and Campsite
Re: Agricultural relief on land for inheritance tax pourposes
« Reply #2 on: January 17, 2017, 11:00:26 am »
As far as I thought 'one off gifts' are tax free?


  • Joined Aug 2014
Re: Agricultural relief on land for inheritance tax pourposes
« Reply #3 on: January 18, 2017, 10:29:02 pm »
Thanks for that..I have posted off the innheritance tax forms today...lots of them so will wait and see..Rang the Inland Revenue helpline several times but they take ages to answer It is only 6 acres of land that I am applying for and not my fathers house which was originally a smallholding.As I live across the field it adjoins my cotttage.
I enclosed a cheque for the probate fee...£215, -When my mother died 5 years ago the solicitors charged £8000 so was determined to do probate myself this time.
Regarding one off gifts "bazzias' are you thinking of one off gifts under £200 a year ?


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