ExpertACCA · Question 26 · Inheritance tax
Section B - Case 3 (Oakfield Farms)
Arthur owned Oakfield Farms. He died in November 2023. He had owned the agricultural land for 5 years. For the first 3 years, he rented it out to a local farmer. For the last 2 years before his death, Arthur farmed the land himself.
Does the agricultural land qualify for Agricultural Property Relief (APR) for Inheritance Tax purposes?
Section B - Case 3 (Oakfield Farms)
Arthur owned Oakfield Farms. He died in November 2023. He had owned the agricultural land for 5 years. For the first 3 years, he rented it out to a local farmer. For the last 2 years before his death, Arthur farmed the land himself.
Does the agricultural land qualify for Agricultural Property Relief (APR) for Inheritance Tax purposes?
Answer options:
No, because he did not own it for 7 years.
No, because he did not farm it himself for the entire 5 years of ownership.
Yes, because he owned and occupied it for agricultural purposes for at least 2 years immediately before death.
Yes, because all agricultural land automatically qualifies for APR regardless of ownership length.
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