Commentary

I7.182 BPR and APR interaction example

IHT, trusts and estates

I7.182 BPR and APR interaction example

I7.182 BPR and APR interaction example

Example

BC Ltd has, for over seven years, owned farmland which is farmed under an agricultural tenancy granted before 1 September 1995 by Mr X. The company also owns other land which it has farmed for over two years.

The company's assets are valued at:

tenanted farmland (all agricultural)£200,000
vacant possession farmland (all agricultural)250,000

Shareholders

Mr Y30%
Mrs Y40%
Son30%

Mrs Y gives a 10% holding to her daughter.

Value transferred

The drop in Mr and Mrs Y's holdings from 70% to 60% will not cause any reduction in value of

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