Property Inheritance Tax Relief

If you are a business owner or farmer who wants to ensure property passes to the next generation intact, the solicitors at JMW are here to help provide advice and guidance on securing relief from Inheritance Tax (IHT). 

To speak to our property IHT relief solicitors, contact us on 0333 872 6666 or fill in our online enquiry form and we will get back to you.

Business Property Relief for Inheritance Tax Explained

IHT is payable at 40% on the value of a person’s estate in excess of £325,000; however, up to 100% of relief is available for shares in a company or property used by a business. We can also help you to structure lifetime gifts of business property as incentives to family members who are working within the business.

To read more about protecting your business from IHT, take a look at our dedicated page.

Agricultural Property Relief for Inheritance Tax Explained

Farmland, machinery and interests in agricultural partnerships or companies are subject to either 50% or 100% relief from IHT. However, you do not necessarily have to be directly involved in farming to be eligible for agricultural relief. The following are considered to be agricultural property:

  • Woodland occupied with agricultural land and pasture
  • Buildings used for livestock or fish
  • Cottages and farm buildings
  • Farmhouses
  • Stud farms
  • Short rotation coppice
  • Farmland and buildings dedicated to wildlife habitats

How to Qualify for Agricultural Property Relief

To qualify for agricultural property relief (APR), property must have been occupied by the owner for agricultural purposes for at least two years prior to their death or owned for seven years prior to their death but occupied by another party for agricultural purposes.

If land is tenanted and the tenancy took place after 1st September 1995 and has least two years remaining prior to the date of death, only 50% APR will apply.

HMRC places particular scrutiny on farmhouses, cottages and farm buildings, often making it difficult to apply for APR. When considering one of these properties, HMRC will look at the following:

  • Whether the building is character appropriate in size and nature to the land and pasture owned
  • Whether the building is occupied for agricultural purposes

Our solicitors can help you identify whether an agricultural property is eligible for APR.  

Why Choose JMW?

Ensuring you qualify for IHT relief can mean the difference between a business or farm passing down to the next generation intact or in part due to funding a tax bill. We can ensure that your hard-earned capital will not be unnecessarily exposed to IHT.

Our team is experienced in ensuring that your business or farming interests are held in such a way as to secure the maximum tax relief possible. Whether you want to lease out farmland that you no longer farm yourself or you want to make a lifetime gift of your business interests to family members, we can help you get your affairs in order. We will work alongside your existing advisers to reach a bespoke solution.

Talk to Us

To have a no obligation discussion with our team, get in touch by calling us on 0345 872 6666 or complete our online enquiry form and we will be in touch.

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