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HMRC internal manual

Inheritance Tax Manual

Occupation of farmhouses, cottages and farm buildings: Introduction

Farmhouses, cottages and farm buildings used in connection with any of the activities described at IHTM24061 will normally qualify for agricultural relief.

When deciding whether the use of a property satisfies the conditions for ‘occupation for agricultural purposes’ you must look at the type of property under consideration and the type of activity capable of amounting to use for the purposes of agriculture. When considering whether a farmhouse satisfies IHTA84/S117 note that considerations also apply as to whether the property is a ‘farmhouse’ under IHTA84/S115(2) (IHTM24036).