IHT - Active Husbandry
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has become the important word in order for
farming enterprises to succeed in a claim for Business Property Relief.
inheritance tax (IHT) cases of Balfour (Earl
of) v HMRC  UK UT 300
and McCall (PN McCall & BJA Keenan
(PR of Mrs McClean) v HMRC (2009) STC 990) show how important
it is for the
deceased to be both involved in the business and active in the farming
enterprise. The IHT
case of Arnander (Arnander v HMRC  RVR
which was a farmhouse case shows the importance of being an active
Agricultural Property Relief (APR).
this case the contract farming agreement was considered weak and the
farming involvement wasn’t mentioned in the obituary.
is a parallel in the IHT cases with decisions
that are currently being made about qualification for the Single
(SPS) commonly known as the Single Farm Payment (SFP).
The SFP is currently allocated on occupation. There is much
new rules to qualify
for the agricultural grant will include provisions for farmers to prove
they are actively involved. The
promote that the delays in formally announcing active farmer provisions
in the UK is
there are problems with both the wording and possibly with “public
those landowners with other sources of income (and
dedication of time) other than farming, there is an immediate and
to document the active involvement.
deceased cannot present arguments themselves to HMRC once they die and
a great need to keep photographic evidence, minutes of meetings and,
necessary, diaries of hours worked.
farming agreements should again be reviewed
and there is no time like the present (or after harvest) to tackle this
and make sure clear proof of activity is available.
About the Author
Supplied by Julie
Butler F.C.A. Butler
& Co, Bennett House,
The Dean, Alresford, Hampshire, SO24 9BH.
Tel: 01962 735544. Email; email@example.com,
the author of Tax Planning for Farm and Land Diversification of
which the 3rd
is to be published shortly (Bloomsbury Professional), Equine
ISBN: 0406966540, and the forthcoming Stanley:
Taxation of Farmers and Landowners (LexisNexis)
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Article Published/Sorted/Amended on Scopulus 2012-03-15 11:40:16 in Tax Articles