Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Enough assets

09 June 2008
Categories: Tax cases
Trustees of the Nelson Dance Family Settlement (SpC 682)

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...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon