Claiming APR on farmhouses and cottages

In order to provide evidence of occupation for agricultural purposes under IHTA 1984 s 117 there must be proof of agricultural activity and that the property is occupied for that activity in physical terms.

As with all claims for agricultural property relief (APR) they must be supported by evidence. There are arguments that agricultural occupancy conditions (AOCs) or ‘agricultural ties’ on a property can bolster such claims as well as suppress the property’s value. In turn this can reduce the IHT liability especially following the announcements made on 30 October 2024.

The specific legislation defining an ‘agricultural worker’ is the Town and Country Planning Act 1990 (TCPA 1990) s 336 which provides a broad definition of an ‘agricultural worker’. Formerly the Town and Country Planning Act 1971 s 290(1) similarly defined an agricultural worker for older consents. This means applicants for...