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HMRC internal manual

Inheritance Tax Manual

The rate of relief: Grazing licences and the higher rate of relief

There is a widespread practice of selling or granting licences or lets to graze animals or take grass from land for a season. This is particularly common when a farmer retires. Various terms are used to describe it, such as sale of grass, grazing rights, grazing licence or lets or grasskeep.

Practice varies between different parts of the country. The precise terms of each arrangement also depend on what the parties agree.

If vacant possession reverts to the landowner within a year, relief from inheritance tax, if due, will be at the higher rate.