Currently considering allowing a farm business tenancy for turf production and can't get a clear view on the inheritance tax implications down the line from HMRC or anywhere else.
We aren't at this point in time yet... but we are looking well ahead and can't see any HMRC tribunal cases on this matter which implies HMRC haven't contested one yet.
I've read up on HMRC's site around agricultural property relief
In their inheritance tax manual IHTM24062 - Agricultural purposes: Other uses of land - HMRC internal manual - GOV.UK (www.gov.uk) HMRC state:
the growing of grass for turf was accepted as agricultural for rating purposes in Assessor for Lothian Region v Rolawn Ltd [1990] SLT 433. (This case contains a good review of case law. But you should consult Technical before attempting to deny agricultural relief under this head).
But that's ratings not IHT and unhelpfully they don’t clarify it here:
mhttps://www.gov.uk/guidance/agricultural-relief-on-inheritance-tax#agricultural-property
Has anyone got any experience of dealing with the District Valuer's office in relation to turf production? I guess that would be the last step before something going to tribunal so a good place to ask for knowledge people have from direct experience of that process.
We aren't at this point in time yet... but we are looking well ahead and can't see any HMRC tribunal cases on this matter which implies HMRC haven't contested one yet.
I've read up on HMRC's site around agricultural property relief
In their inheritance tax manual IHTM24062 - Agricultural purposes: Other uses of land - HMRC internal manual - GOV.UK (www.gov.uk) HMRC state:
the growing of grass for turf was accepted as agricultural for rating purposes in Assessor for Lothian Region v Rolawn Ltd [1990] SLT 433. (This case contains a good review of case law. But you should consult Technical before attempting to deny agricultural relief under this head).
But that's ratings not IHT and unhelpfully they don’t clarify it here:
mhttps://www.gov.uk/guidance/agricultural-relief-on-inheritance-tax#agricultural-property
Has anyone got any experience of dealing with the District Valuer's office in relation to turf production? I guess that would be the last step before something going to tribunal so a good place to ask for knowledge people have from direct experience of that process.
