{"id":834,"date":"2023-04-20T22:00:00","date_gmt":"2023-04-20T21:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/tax-trust\/?p=834"},"modified":"2025-07-10T10:06:51","modified_gmt":"2025-07-10T09:06:51","slug":"a-guide-to-agricultural-relief","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/tax-trust\/a-guide-to-agricultural-relief\/","title":{"rendered":"Agricultural Property Relief: What You Need to Know for IHT Planning"},"content":{"rendered":"
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Have any of your clients ever owned assets during their lifetime that meet the\u00a0<\/span>Agricultural Property Relief (AR)<\/span><\/a>\u00a0requirements? If so, then this guide explains how to identify and manage agricultural assets, so that you can ensure your clients maximise and secure Agricultural Property Relief. <\/span>\u00a0<\/span><\/p>\n

When receiving instructions and advising on planning, you must understand the nature of your clients\u2019 agricultural activities. This knowledge will help you satisfy HMRC\u2019s requirements when applying for AR. Furthermore, you should advise your clients to keep a record of any agricultural property and the agricultural use and purpose of their assets.<\/span>\u00a0<\/span><\/p>\n

Clients should review their planning regularly or when a significant change occurs. Regular reviews will enable them to establish further planning or stay informed about legislation changes that may affect their already established planning.<\/span>\u00a0<\/span><\/p>\n

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What is Agricultural Property Relief?<\/strong><\/h2>\n

In simple terms, Agricultural Property Relief is a relief from inheritance tax (IHT).<\/span>\u00a0<\/span><\/p>\n

Depending on their circumstance, your clients will either receive the relief at 100% (ensuring they don\u2019t need to pay any IHT) or at 50% when specific requirements are not satisfied. To ensure your clients qualify, it is crucial you understand what classes as Agricultural Property (AP).<\/span>\u00a0<\/span><\/p>\n

Although IHT legislation does not define what constitutes agriculture property, the Inheritance Tax Act 1984 s115(2) (\u2018IHTA 1984\u2019) outlines the types of property and land that come under the banner of \u2018agricultural property.\u2019 Within section 115(2), AP is outlined as:<\/span>\u00a0<\/span><\/p>\n