I7.354 APR and settlements examples

IHT, trusts and estates

I7.354 APR and settlements examples

I7.354 APR and settlements examples

Example 1—ownership by life tenant of QIIP

Under a tenancy beginning before 1 September 1995 the trustees of a QIIP let the settled farm to a third party farmer throughout the eight years immediately preceding the death of the life tenant.

The life tenant did not occupy the property, but he satisfied the seven-year ownership requirement so the value of the farm will be reduced by 50%.

The property will be valued without vacant possession.

Example 2—QIIP farm managed by agent

The trustees employed a manager to farm the settled farm, and paid him a salary, for five years up

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