IHTM25222 | Land and buildings, machinery and plant: Property within IHTA84/S105 (1)(d)

IHTA84/S105 (1)(d) applies to

• any land or buildings, machinery or plant which

• immediately before the transfer

• was used wholly or mainly for the purposes of a business (IHTM25153)

• carried on by either a company which the transferor then controlled or a partnership of which the transferor was then a partner.

There are additional requirements governing the period of user (IHTM25223) and the transferor’s interest in the occupying company or partnership (IHTM25224).

Used for the purposes of a business is a factual test; there does not have to be a binding contractual relationship between the transferor and the company or partnership.

There are special rules (IHTM25354) where part of any land or building within IHTA84/S105 (1)(d) is used exclusively for the purposes of a business.

For the valuation implications of the IHTA84/S105 (1)(d) situation, see the following instructions:

• related property (IHTM23206)

• partnership property (IHTM23198)

• property let to a company in which the deceased was interested (IHTM23202)

• business premises owned by the deceased and occupied by a partnership terminating on the relevant transfer (IHTM23174)

• machinery and plant (IHTM23195)