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HMRC internal manual

Inheritance Tax Manual

Agricultural tenancies: Introduction

For inheritance tax purposes we need to consider whether or not agricultural land is subject to a tenancy. If it is the value of the land (IHTM24150) and the rate of agricultural relief that is likely to be available (IHTM24140) will both be affected.

There may also be rare occasions where we need to value an agricultural tenancy

  • Where a partnership/business is in deficit, but holds an agricultural tenancy (IHTM24016)
  • Where the partnership/business holds an agricultural tenancy, but does not qualify for agricultural/business relief from inheritance tax

IHTM23198 gives details of what to do in such situations.