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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Land and buildings, machinery and plant: Property within IHTA84/S105 (1)(d)

IHTA84/S105 (1)(d) applies to

  • any land or buildings, machinery or plant which
  • immediately before the transfer
  • was used wholly or mainly for the purposes of a business (IHTM25153)
  • carried on by either a company which the transferor then controlled or a partnership of which the transferor was then a partner.

There are additional requirements governing the period of user (IHTM25223) and the transferor’s interest in the occupying company or partnership (IHTM25224).

Used for the purposes of a business is a factual test; there does not have to be a binding contractual relationship between the transferor and the company or partnership.

There are special rules (IHTM25354) where part of any land or building within IHTA84/S105 (1)(d) is used exclusively for the purposes of a business.

For the valuation implications of the IHTA84/S105 (1)(d) situation, see the following instructions:

  • related property (IHTM23206)
  • partnership property (IHTM23198)
  • property let to a company in which the deceased was interested (IHTM23202)
  • business premises owned by the deceased and occupied by a partnership terminating on the relevant transfer (IHTM23174)
  • machinery and plant (IHTM23195)