IHTM24110 | Replacement property: Introduction

The occupation (IHTM24070) and ownership (IHTM24100) conditions are relaxed where the agricultural property transferred has replaced other agricultural property, IHTA84/S118

The two year occupation condition is satisfied if the two (or more) properties concerned were occupied by the deceased/transferor for the purposes of agriculture for an overall period of at least two out of the five years immediately before the transfer, IHTA84/S118 (1). (IHTM24110)

The seven year ownership condition is satisfied if the two (or more) properties concerned were both owned (IHTM24100) by the deceased/transferor and occupied (by the deceased/transferor or another) for the purposes of agriculture for an overall period of at least seven out of the ten years immediately before the transfer, IHTA84/S118 (2) (IHTM24111).

The provisions of IHTA84/S119 (occupation by a company or Scottish partnership) apply when you are considering replacement property.

The succession provisions may also combine with IHTA84/S118 to enable the occupation and ownership conditions to be satisfied. (IHTM24111)

The provisions are restricted by IHTA84/S118 (3) to prevent avoidance by greatly increasing the relief available (IHTM24112).