Enough assets

The deceased owned and had carried on in farming as a sole trader. He made two declarations of trust transferring some land to the trustees of a settlement. This property was 'relevant property' for the purposes of IHTA 1984 s 58. However under the transfer of value he had not transferred a business or an interest in the business to the trustees. He died in 2004.

The land qualified as agricultural property for s 116 but as it had development value the trustees claimed business property relief under s 104 for the excess value on the basis that there had been a transfer of value which resulted in a reduction in the value of 'relevant business property' (s 105) in the deceased's estate.

HMRC did not allow the claim saying that none of the value transferred was attributable to the value of relevant business...