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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Successive transfers: Application of IHTA84/S121

When a second transfer is made before the time limit for either the occupation (IHTM24070) or ownership (IHTM24100) tests in IHTA84/S117 has expired, agricultural relief will still be available under IHTA84/S121 (1) provided all the following conditions are met:

  • IHTA84/S121 (1)(a) - The whole or part of the value transferred by the earlier transfer was eligible for agricultural relief under IHTA84/S115 to 124B (or would have been if such relief had then been operative), and
  • IHTA84/S121 (1)(b) - The whole or part of the property which was or would have been eligible for relief

    • became, through the earlier transfer, the property of the subsequent transferor or his spouse or civil partner (IHTM11032), and
    • is, at the time of the subsequent transfer, occupied for the purposes of agriculture (IHTM24060) either by the subsequent transferor or by the personal representatives of the earlier transferor, and
  • IHTA84/S121 (1)(c - That property or part (or any property which has replaced it) would be eligible for relief on the subsequent transfer apart from theIHTA84/S117 occupation and ownership tests,) and
  • IHTA84/S121 (1)(d) - The earlier or the subsequent transfer was or is a transfer on death,