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HMRC internal manual

Inheritance Tax Manual

Ownership: Introduction

To satisfy the second alternative condition in IHTA/S117, the deceased/transferor must have owned the property concerned throughout the seven years immediately before the transfer and the property must have been occupied (IHTM24070) throughout the period for the purposes of agriculture (IHTM24060). The identity of the occupier is not material, but the continuity of such occupation is vital.

This general rule is relaxed where

  • where the property transferred replaced other relievable property, IHTA84/S118 (IHTM24111)
  • where the deceased/transferor became entitled to the property on a death, IHTA84/S120 (IHTM24121)