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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Occupation of farmhouses, cottages and farm buildings: Farm buildings

The main problems are

  • buildings used in connection with the breeding and rearing of horses that are not stud farms (IHTM24068),
  • occupation of buildings that is not ancillary to that of qualifying agricultural land or pasture.
  • buildings used for intensive rearing or cultivation (IHTM24033) if their occupation was not ancillary to that of qualifying agricultural land or pasture.

Reading a professional valuation may help to shed some light on whether outbuildings etc. are occupied for agricultural purposes. Derelict buildings are unlikely to have been occupied for the purposes of agriculture.

If land is let on a grazing licence (IHTM24073) and there are extensive farm buildings, it may be that not all the buildings or structures were occupied for agricultural purposes.