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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Unlisted shares: Occupation and ownership tests

IHTA84/S123 (1)(a) states that for the relief to apply the company must show that it has

  • occupied the agricultural property for the purposes of agriculture (IHTM24060) throughout the two years before the date of transfer, or
  • owned the agricultural property throughout the seven years before the date of transfer and that it was occupied (by the company or another) for the purposes of agriculture during that period.

Occupation by a person who subsequently controls the company is treated by IHTA84/S123 (5) as occupation by the company.

IHTA84/S123 (1)(b) requires that the transferor must have owned the transferred shares or securities for two or seven years as appropriate.