Inheritance Tax: Agricultural Property Explained

It was reported by the Guardian last year that farmland in Britain is rapidly becoming a haven for those looking to hide from inheritance tax. If you’re the owner of agricultural property, you may be relieved from all or a percentage of inheritance tax depending on the criteria of the land.

Understanding whether you’re exempt from paying inheritance tax on your land is a pretty big deal, so we’ve put together some details to keep you in the know.

What a Relief!

The amount of agricultural property relief you’re entitled to will depend on the value of the land, who is responsible for farming and also how long the farmland has been owned for. In order to apply for this exemption, the following must apply:

  • Land which is required to raise animals and produce crops
  • Farmhouses or other farm buildings
  • Agricultural shares
  • Trees that are planted and harvested at least every 10 years
  • Land used to breed and rear horses
  • The value of milk quota associated with the land
  • Agricultural land which is not currently being farmed under the Habitat Scheme
  • Agricultural land which is not currently being farmed under a crop rotation scheme

However, the below do not qualify for Agricultural Relief:

  • Abandoned buildings
  • Crops that have been harvested
  • Any livestock
  • Farm equipment or machinery
  • Property that is subject to a binding contract for sale

Source: Gov.uk

How can Forbes Solicitors help me?

If you’re the owner of a rural estate and are looking to pass this on to your loved ones, it’s important to be fully aware of how this can be factored into your will and how you may be affected by Inheritance Tax. At Forbes Solicitors, we have a team of specialist solicitors who are able to advise on Agricultural Relief and Inheritance Tax, as well as how to arrange your financial affairs in the most tax efficient way.

If you need to know more about Inheritance Tax or just need advice on the agricultural property you own, get in touch with one of our team on 0800 975 2463 or by email today.

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