Commentary

I3.159 Grant of agricultural tenancies

IHT, trusts and estates

I3.159 Grant of agricultural tenancies

I3.159 Grant of agricultural tenancies

The grant of a tenancy of agricultural property in the UK, Channel Islands or the Isle of Man, for use for agricultural purposes is not a transfer of value by the grantor if he makes it for full consideration in money or money's worth1.

It seems most unlikely that 'grant' in this context has its strict meaning of a grant of a legal estate (as opposed to a tenancy agreement operating only in equity). However, the most common type of agricultural tenancy, a market rent tenancy from year to year, is almost certainly within the Law of Property Act 1925, s 54(2) and capable of being a grant in the strict sense even though created informally and not by deed2.

It should also be noted that IHTA 1984, s 16 will not necessarily prevent the grant of an agricultural tenancy from

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