Commentary

I7.381A APR clawback—the main conditions

IHT, trusts and estates

I7.381A APR clawback—the main conditions

I7.381A APR clawback—the main conditions

The conditions which have to be fulfilled in relation to a lifetime transfer, in order that APR which applied at the time of the transfer should also apply for the purposes of tax or additional tax payable by reason of the transferor's death within seven years of the transfer, are as follows:

  1.  

    (a)     the transferee (defined as described in I7.381B) has owned 'the original property', in relation to the transfer (or replacement property satisfying certain conditions, see I7.381C), continuously from the transfer until the transferor's death or his own earlier death and is not under contract to sell it at the time of that death1, and

  2.  

    (b)     if the original property is agricultural property, it (or permitted replacement property as described in I7.381C) is agricultural property immediately before the transferor's (or the transferee's own earlier) death and has been occupied (by anybody) for the purposes of agriculture since the transfer, or, where the property is shares reflecting agricultural value, the underlying agricultural property has been owned by the company

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