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Our clients — father, son and son's wife — farm in partnership; all three are genuinely involved in the farm business. Father owns the substantial farmhouse and land personally, but in the last year he has moved to a small house near the farm and son and his wife have taken up residence in the farmhouse. The farmhouse satisfies the 'character appropriate' test but, given the location and type, it has (based on Antrobus) a significant value beyond its agricultural value.
Our clients — father son and son's wife — farm in partnership; all three are genuinely involved in the farm business. Father owns the substantial farmhouse and land personally but in the last year he has moved to a small house near the farm and son and his wife have taken up residence in the farmhouse. The farmhouse satisfies the 'character appropriate' test but given the location and type it has (based on Antrobus) a significant value beyond its agricultural value.
Because of this and his other assets father is contemplating gifting the farmhouse (but not the land) to son and wife to mitigate inheritance tax on his eventual death. The issue that is causing us some trouble is that should father die within seven years of the gift the agricultural value would at present only qualify for 50% agricultural property relief (APR)....
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
