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HMRC internal manual

Shares and Assets Valuation Manual

HM Revenue & Customs
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Agricultural Property Relief: Share Ownership Test

In addition to the company occupation/ownership test, the shares or securities must have been owned by the transferor

  1. where the occupation rule in s.123(1)(a)(i) applies, (see SVM112060) throughout the same two year period ending with the date of the transfer or
  2. where the ownership rule in s.123(1)(a)(ii) applies, (see SVM112060) throughout the same seven year period ending with the date of the transfer.

As with business relief the ownership tests apply only to the shares or securities and not to the possession of control as such (see Chapter 111 of this manual at SVM111000 on the same subject).

For this purpose, ownership is considered to mean

  • in the case of property subject to non-interest in possession settlements or (on or after 22 March 2006) other trusts subject to ten-yearly or exit charges, legal ownership by the trustees
  • in all other cases, beneficial entitlement (including entitlement to settled property in which the transferor had a qualifying beneficial interest in possession).

s.91 - Where an unadministered residuary estate includes shares in a company which owns agricultural property, a residuary beneficiary is treated as owning those shares, or the appropriate proportion, from the date of death.

See Chapter 24 of the Inheritance Tax manual at IHTM24123 for further information.

  Additional Guidance: SVM150000