IHTM24210 - 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.

Any value attaching to an agricultural tenancy should be included along with the value of other agricultural property. You may need to consider the value of an agricultural tenancy in particular 

  • 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 

  • Where, for deaths on or after 6 April 2026, all the agricultural and business property held is likely to exceed the 100% relief allowance (IHTM25500). Any value over this amount, including the tenancy, will only qualify for 50% relief.

IHTM23198 gives details of what to do in such situations.