IHTM24037 - Agricultural property: Agricultural 鈥榩roperty鈥�
A farmhouse (and other buildings) will qualify as agricultural property, but only if it is 鈥榦f a character appropriate to the property鈥�. 鈥樆使谔逵齛pp property鈥� in this context means the agricultural land or pasture which qualifies as agricultural property and which forms part of the estate for IHT purposes.
皇冠体育app charge to tax under IHTA84/S3 (1) arises in respect of the value transferred (IHTM04028) calculated by reference to the loss in value to an estate or the value of an estate. IHTA84/S116 states that, 鈥榳here the whole or part of the value transferred by a transfer of value is attributable to the agricultural value of agricultural property, the whole or the part of the value transferred shall be treated as reduced by the appropriate percentage.鈥� 皇冠体育app IHTA84/S115 (2) definition of agricultural property applies for the purpose of the relief under IHTA84/S116 (1), so the agricultural land or pasture in question is that to which the whole or part of the value transferred by the transfer of value is attributable.
皇冠体育apprefore the farmhouse has to be of a character appropriate (IHTM24050) to property in the estate of the deceased/transferor.