IHTM24110 - Replacement property: Introduction
The two year occupation condition is satisfied if the two (or more) properties concerned were occupied by the deceased/transferor for the purposes of agriculture for an overall period of at least two out of the five years immediately before the transfer, IHTA84/S118 (1). (IHTM24110)
The seven year ownership condition is satisfied if the two (or more) properties concerned were both owned (IHTM24100) by the deceased/transferor and occupied (by the deceased/transferor or another) for the purposes of agriculture for an overall period of at least seven out of the ten years immediately before the transfer, IHTA84/S118 (2) (IHTM24111).
The provisions of IHTA84/S119 (occupation by a company or Scottish partnership) apply when you are considering replacement property.
The succession provisions may also combine with IHTA84/S118 to enable the occupation and ownership conditions to be satisfied. (IHTM24111)
The provisions are restricted by IHTA84/S118 (3) to prevent avoidance by greatly increasing the relief available (IHTM24112).
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