IHTM30213 - Transfers on death: land

Land of any description, wherever situated, is qualifying property for instalments. 

Instalments are interest free (IHTM30363): 

  • From 6 April 2026, to the extent that the value is reduced by Agricultural Relief (AR) or Business Relief (BR), or 

  • Is reflected in the value transferred by the transfer of a business or an interest in a business  if that value is not so reduced   

  • Up to 5 April 2026, to the extent that the land 

is reflected in the value transferred by the transfer of a business or an interest in a business 

or 

Otherwise, the instalments are not interest free. 

Business relief (BR) 

From 6 April 2026, the value of the land which qualifies for Business Relief (BR) (IHTM25131) also qualifies for interest free instalments.  

Up to 5 April 2026, land which qualified for BR did not necessarily qualify for interest free instalments. Whether the instalments are interest free depended on the paragraph of IHTA84/S105 (1) under which the land qualifies for BR: 

  • if the land (including settled land) qualified for BR on the transfer under IHTA84/S105 (1)(a), the instalments are interest free 

but 

  • if the land qualified for BR only under IHTA84/S105 (1)(d) or (e), the instalments are not interest free. 

Agricultural property 

Note that agricultural property (IHTM24030) qualifies for interest free instalments only to the extent that: 

  • its value is reduced by AR (or, from 6 April 2026, BR) 

or 

  • it is reflected in the value transferred by the transfer of a business or an interest in a business.