100% relief on vacant possession land
Where agricultural property qualifies for APR, in relation to a transfer after 9 March 1992, there is 100% relief if the transferor's interest in the property, immediately before the transfer, carries the right to vacant possession or the right to obtain it within the next 12 months1.
There is an important HMRC concession which extends the scope of 100% relief2. On a transfer of tenanted agricultural land HMRC accepts that the condition regarding vacant possession which qualifies agricultural property for 100% relief3 is satisfied where the transferor's interest in the property either:
• carries a right to vacant possession within 24 months of the date of the transfer, or
• is, notwithstanding the terms of the tenancy, valued at an amount broadly equivalent to the vacant possession value of the property
The first condition applies where there is a right to terminate an agricultural tenancy but the Agricultural Holdings Act 1986 would postpone the effect of the notice to quit beyond 12 months (but less than 24 months) from the date of the transfer. It also applies to tenancies which avoid security of tenure under the Agricultural Holdings Act 1986 by the grant of a term certain of more than one year and less than two years (see below).
The second applies to cases such as where the tenant is a company controlled by the transferor, or the tenancy is related property (see I8.242).
Where the agricultural land is in England and Wales,