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Agricultural Property Relief And Continuous Use


Julie Butler - Expert Author

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Published on 9th August 2010

In the case of Atkinson and another (executors of Atkinson deceased) TC420 it was emphasised that to qualify for Agricultural Property Relief (APR) the agricultural property (in this case a farmhouse) has to be used for an agricultural purpose for seven years but the use does not have to be continuous.  A farmhouse qualifies as agricultural property (s.115 IHTA 1984) subject to being “character appropriate”.  The latter was not in question in this case but complying with the occupation test of s.117 IHTA 1984. 

For approximately four years of the last seven years Mr Atkinson, who owned the farmhouse, was in a care home but he did return to the bungalow which still contained his belongings.  He was still involved in farming decisions as the senior partner.

This case gives guidance to those elderly farmers and perhaps the action plan of the relatives is not to rush out and let the farmhouse the day after the farming partner moves into a care home!  This could be quite difficult for some farming partnerships who would need the rental income to pay for the care home…

About the Author

Article supplied by Julie Butler F.C.A. Butler & Co, Bennett House, The Dean, Alresford, Hampshire, SO24 9BH.  Tel: 01962 735544.  Email;, Website;

Julie Butler F.C.A. is the author of Tax Planning for Farm and Land Diversification ISBN: 0754517691 (1st edition) and ISBN: 0754522180 (2nd edition) and Equine Tax Planning ISBN: 0406966540.  The third edition of Tax Planning For Farm and Land Diversification will be published shortly.

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Article Published/Sorted/Amended on Scopulus 2010-10-22 12:32:48 in Tax Articles

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