SVM112080 - IHT Agricultural Property Relief: Ownership Rule (Agricultural Property)

There is no provision similar to s.123(5) regarding ownership of land and, therefore, a company is not treated as owning land at any time when the land was owned by a person who subsequently controls the company.

It follows that, where the company owns agricultural land and the land has been let from year to year under a tenancy which commenced more than seven years before the transfer date, there is no relief unless the company has owned the land continuously for seven years at least.

It also follows that the company must have been in existence for seven years at least (otherwise, it could not have owned the land for seven years) - s.123(a)(ii).

The identity of the occupier is not material but the continuity of such occupation is vital.

For this purpose, ownership is considered to mean beneficial entitlement.

For further information see IHTM24100 onwards.

Additional Guidance; SVM150000