Q&As

A Will contains a standard Nil Rate Band Discretionary Trust clause leaving 'the largest sum of cash which could be given on the trusts of this clause without inheritance tax becoming due in respect of the transfer of the value of my estate I am deemed to make immediately before my death'. There is farmland qualifying for 100% agricultural property relief (APR) in the estate. If this farmland is appropriated to satisfy the legacy, as the Will allows, is it the open market value only that is taken into account when making the transfer or the value reduced by the APR? If so, would the APR be diluted by the effect of section 39A of the Inheritance Tax Act 1984?

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Produced in partnership with Lynne Counsell of Addington Chambers
Published on: 05 July 2021
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Agricultural Property Relief

Agricultural relief applies to agricultural property as defined in section 115(2) of the inheritance tax Act 1984 (IHTA 1984) and, as here, can be 100% if the relevant conditions are satisfied.

See Practice Note: IHT—agricultural property relief and Gov UK Guidance: Agricultural relief for Inheritance Tax.

The relief is given by reference to the agricultural

Lynne Counsell
Lynne Counsell

Barrister, Addington Chambers

Lynne has been in traditional Chancery practice for some thirty years, specialising in probate matters, construction of wills and trusts and also financial services and drafting.

Lynne was for some years counsel for Tower Hamlets, representing them on landlord and tenant cases and counsel for Bedford Building Society representing it on mortgage cases.

Lynne has written or updated over fifty books, including writing the initial volume of Atkin’s Court Forms “Financial Services” and updating Halsbury’s Laws on Injunctions. Lynne was also co-author of two editions of “Insider Trading” and co-editor and one of the writers of “Chancery Practice and Procedure.”

Articles include “Marketing of Investments” for the Law Society Gazette and “The Doctrine of Mutual Wills” for the Trust Quarterly Review. Lynne won one of the few cases on mutual wills in the last fifty years – Charles v Fraser (2010).

Lynne has drafted the standard unit trust for the government of Nigeria, the rules and related documentation for various building societies and clubs, shareholder agreements, company takeovers compliance documentation for certain banks as well as wills and trusts.

Lynne was awarded the 2017 Corporate international Magazine Global Award – “Investment Contracts Barrister of the Year in England”.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Discretionary trust definition
What does Discretionary trust mean?

A trust in which the trustees have power to select the beneficiaries to benefit from the trust.

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