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24 March 2009
CRC v Trustees of the Nelson Dance Family, Chancery Division, 22 January 2009
The deceased owned and carried on a farm business as a sole trader. Certain agricultural land and buildings were transferred to a family settlement.
The transfer did not include an interest in the business to the trustees.
However, as the land had development value, the trustees claimed business property relief under IHTA 1984, s 104.
HMRC said that relief was not due as none of the value transferred could be attributed to the business property.
The trustees appealed to the Special Commissioners, who found in their favour, so HMRC appealed.
In the High Court, Mr Justice Sales said that provided that property had been used in the farming business, business property relief was due.
HMRC’s appeal was dismissed.
