Harrold v Inland Revenue Commissioners

Sp C [1996] SSCD 195 (Sp C 71).

An individual (H) died in 1990. In 1986 he had transferred his share in a farmhouse to his son (who already owned the other share). The farmhouse had been unoccupied since 1983 and remained unoccupied until 1988, when the son moved into it following the completion of renovation work.  The Executor’s of H’s estate claimed agricultural property relief (APR) on the property but the Inland Revenue sought to include the value of the property in H’s estate for IHT purposes.  The executors appealed.

The Special Commissioner dismissed the appeal, holding that, although the farmhouse was agricultural property, it had not been occupied at all for agricultural purposes before 1988, and thus had not been agricultural property 'occupied by the transferor for the purposes of agriculture throughout the period of two years ending with the date of the transfer'. Accordingly, the conditions of for relief were not satisfied and agricultural property relief was not due.