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bigduckontax
bigduckontax, Accountant
Category: Tax
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If you own farmland but only rent it out to a local farmer,

Resolved Question:

If you own farmland but only rent it out to a local farmer , does the ownership enable you to not to pay inheritance tax
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Here is the basic rule from the Gov UK web site:

"The property must have been owned and occupied for agricultural purposesimmediately before its transfer for:

  • 2 years if occupied by the owner, a company controlled by them, or their spouse or civil partner
  • 7 years if occupied by someone else'

You can find the full guidance on Agricuitural Relief here:

https://www.gov.uk/guidance/agricultural-relief-on-inheritance-tax

I do hope you find my reply of assistance.

Customer: replied 1 year ago.
hi
That's a great reply ,taken from a web page
not what I was looking for
What I wanted to know was If you own farmland but NEVER farm it yourself
Does keeping it allow you to pass it on without inheritance tax being paida yes or no is all I want
Customer: replied 1 year ago.
The land has been rented out for 30 years
Expert:  bigduckontax replied 1 year ago.

Provided that the land was owned and occupied for agricultural purposes then the relief applies. Yuu are covered by the seven year rule, So the answer is 'YES.'

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.