Commentary

I7.308 Agricultural value

IHT, trusts and estates

I7.308 Agricultural value

I7.308 Agricultural value

The agricultural value of agricultural property is the price it would fetch if it were sold subject to a perpetual covenant confining its use to agriculture1.

For an example of the operation of this see Taylor (Sosnowski's personal representative) v IRC2, where the difference between agricultural value and market value was due to planning permission. In Lloyds TSB Private Banking Plc v IRC3, the Tribunal upheld HMRC's contentions that the agricultural value qualifying for APR of a farmhouse was 30% less than its market value. The house was a historic building in an attractive location which had a value as a residence independently of its merits as a farmhouse. HMRC had previously unsuccessfully argued that it did not qualify for APR at all on the grounds that it was not ancillary to the agricultural land (see Lloyds TSB (personal representatives of Antrobus deceased) v IRC4, and I7.305)

The relief extends to this agricultural value only, and any additional value arising from the use of the land for any other non-agricultural use, such as the siting of caravans or as development land, will be excluded5 (although some

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