The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
APR reduces the value transferred for inheritance tax purposes when assets such as farmland and farm buildings are gifted either during lifetime or on death. APR works in a similar way to Business Property Relief (BPR) ― for guidance on this, see the Business property relief (BPR) guidance note. See also Simon’s Taxes Division I7.3 (subscription sensitive).
APR is given before any available annual exemptions, and is either available at 50% or 100%.
If an individual dies and his estate includes agricultural property, APR is also given as a deduction in the estate when calculating death tax. The relief is automatic and no formal claim is required.
Agricultural property means either agricultural land or buildings, used for the purposes of farming and situated either in the UK, the Channel Islands, the Isle of Man or an EEA State.
Agricultural property relief is primarily available in two situations:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login