SVM112040 | IHT Agricultural Property Relief: Shares or Securities which give control

Section 122(1)(b) IHTA 1984

The relief is available only if the shares or securities gave the transferor control of the company immediately before the transfer.

For the meaning of ‘securities' and 'control' and a summary of the shares or securities, which may be taken into account, see SVM111040 and SVM111050 (in connection with business relief (BR)).

Sections 119(1) and 123(5) IHTA 1984

Careful attention should be given to any suggestion that control for AR can be derived from factors other than the rights of the shares and securities, for example, a casting vote. See the Special Commissioners decision in Executors of The Will of Fanny Walker deceased V CIR (SpC00275)

Occupation of a property by a company which is controlled by the transferor is treated as occupation by the transferor. Therefore, a valuer may be asked to advise whether a transferor had control of a company for the purpose of section 119(1) IHTA 1984 even when no valuation of shares or securities is involved.

For these purposes, occupation by a subsidiary of a company controlled by the transferor is also treated as occupation by the transferor.

Additional Guidance: SVM150000