Successive transfers: The occupation condition
IHTA84/S121 (1)(b) requires the property to be occupied (IHTM24070) for the purposes of agriculture (IHTM24060) at the time of the subsequent transfer by either the subsequent transferor or the personal representatives of the earlier transferor. You should seek advice from Technical on any case where the earlier transferor was life tenant of the property unless, at the time of the subsequent transfer, it is occupied by the subsequent transferor for the purposes of agriculture (and so this condition is clearly satisfied).
If the parties claim that the occupation requirement in IHTA84/S121 (1)(b) is satisfied where the occupier is a company controlled by ‘that person or by the personal representative of the transferor in relation to the earlier transfer’ you should seek advice from Technical.
The occupation requirement in IHTA84/S121 (1)(b) relates to the property which was (or would have been) eligible for agricultural relief on the earlier death. However S121 (1)(c) and (2) make it clear that the section can apply to replacement property (IHTM24110). Accordingly, where there is replacement property at the time of the subsequent transfer, the occupation requirement in S121(1)(b) should be applied to the replacement property.