IHTM30213 | Transfers on death: land

Land of any description, wherever situated, is qualifying property for instalments.

Instalments are interest free (IHTM30363):

• From 6 April 2026, to the extent that the value is reduced by Agricultural Relief (AR) or Business Relief (BR), or

• Is reflected in the value transferred by the transfer of a business or an interest in a business if that value is not so reduced

• Up to 5 April 2026, to the extent that the land

is reflected in the value transferred by the transfer of a business or an interest in a business

or

• its value is reduced by AR (IHTM24000).

Otherwise, the instalments are not interest free.

Business relief (BR)

From 6 April 2026, the value of the land which qualifies for Business Relief (BR) (IHTM25131) also qualifies for interest free instalments.

Up to 5 April 2026, land which qualified for BR did not necessarily qualify for interest free instalments. Whether the instalments are interest free depended on the paragraph of IHTA84/S105 (1) under which the land qualifies for BR:

• if the land (including settled land) qualified for BR on the transfer under IHTA84/S105 (1)(a), the instalments are interest free

but

• if the land qualified for BR only under IHTA84/S105 (1)(d) or (e), the instalments are not interest free.

Agricultural property

Note that agricultural property (IHTM24030) qualifies for interest free instalments only to the extent that:

• its value is reduced by AR (or, from 6 April 2026, BR)

or

• it is reflected in the value transferred by the transfer of a business or an interest in a business.