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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Valuing the partnership interest: Agricultural land tenanted by a partnership

A partnership’s tenancy of agricultural land may have a substantial capital value, but quite often this value is not accounted for at all in the accounts. A clue to its existence will be a deduction for rent in the profit and loss account.

You will need to obtain full details of the tenancy from the taxpayer. These should include:

  • the name of the landlord
  • when the tenancy was granted
  • what was the original rent
  • what is the rent being paid now
  • the length of the tenancy.

You should obtain a copy of any written agreement.

If a value is required you should follow the guidance at (IHTM24162).