SCIT INHERITANCE TAX – agricultural property relief – freehold house which was owned and occupied by the deceased – agreed that it was a farmhouse – whether it was of a character appropriate to the property – yes – IHTA 1984 s 115(2).
Miss Antrobus had lived in a substantial freehold house, surrounded by about 126 acres of freehold land and 6.54 acres of tenanted land all of which was agricultural land or pasture. The Inland Revenue agreed the house was a farmhouse, but questioned whether the farmhouse was ‘of a character appropriate to the property’ within the meaning of section 115(2), ‘the property’ being the 126 acres of freehold land and the 6.54 acres of tenanted land which constituted the agricultural land or pasture. The taxpayer argued that the test as to whether a farmhouse was ‘of a character appropriate to the property’ was whether it properly belonged to the surrounding farm.
Held: The dwellinghouse was appropriate, by reference to its size, content and layout, with the farm buildings and the particular area of farmland being farmed: ‘the principles which have been established for deciding whether a farmhouse is of a character appropriate to the property may be summarised as: first, one should consider whether the house is appropriate by reference to its size, content and layout, with the farm buildings and the particular area of farmland being farmed (Korner); secondly, one should consider whether the house is proportionate in size and nature to the requirements of the farming activities conducted on the agricultural land or pasture in question (Starke); thirdly that although one cannot describe a farmhouse which satisfies the ‘character appropriate’ test one knows one when one sees it (Dixon); fourthly, one should ask whether the educated rural layman would regard the property as a house with land or a farm (Dixon); and, finally, one should consider the historical dimension and ask how long the house in question has been associated with the agricultural property and whether there was a history of agricultural production (Dixon). ‘
Judges:
Dr Nuala Brice
Citations:
[2002] UKSC SPC00336
Links:
Statutes:
Inheritance Tax Act 1984 8115(2)
Citing:
Cited – Dixon v Inland Revenue Commissioners SCIT 22-Oct-2001
SCIT INHERITANCE TAX – relief for agricultural property – cottage with garden and orchard extending to 0.6 acres – whether activities were agriculture – whether orchard and garden were agricultural land or . .
Cited – Starke and Another (Executors of Brown Deceased) v Inland Revenue Commissioners ChD 24-Feb-1994
Mr Brown, the deceased, had owned a site on which was built a substantial farmhouse, with six bedrooms, and various outbuildings. The site formed part of a farm and the issue was whether the site was ‘agricultural land or pasture’ within the meaning . .
Cited – Inland Revenue Commissioners v Korner HL 19-Feb-1969
Income tax, Schedule D – D eduction – Farm ing – Maintenance, etc., expenditure on farm house – Whether expenditure for domestic purposes distinct from those of the trade – Income Tax A c t 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10) 55. 124, . .
Cited by:
See Also – Lloyds TSB Private Banking Plc (personal representative of Rosemary Antrobus deceased) v Inland Revenue (Capital Taxes); Re Cookhill Priory (No 2) LT 10-Oct-2005
LT TAX – Inheritance Tax – agricultural property relief – agricultural value – agricultural property – farmhouses – whether house occupied by ‘lifestyle’ farmer could be farmhouse – held bid of such person could . .
Lists of cited by and citing cases may be incomplete.
Inheritance Tax
Updated: 06 July 2022; Ref: scu.242349