Get off my land!

Farms get their own special tax break, called agricultural property relief.

Farmland, farm buildings, and farm cottages usually qualify for 100 per cent agricultural property relief. Farm animals and equipment don't qualify for relief.

The deceased must have owned the farm for two years prior to death for relief to be due. If the farm property has been let out, the deceased must have owned the property for seven years to qualify for the relief, which might be 100 or 50 per cent according to the terms of the tenancy.

Woodland relief exists too. With woodland, the payment of IHT can be postponed until the timber on the land is sold. However, to qualify for a tax nugget, the deceased must have bought the woodland at least five years prior to death or received it as a gift.

Sometimes you can mix and match IHT exemptions. For example, if you use woodland for business purposes such as a campsite, you can claim business property and woodland relief.

For more information on exemption and relief, download leaflet IHT17: Businesses, Farms and Woodlands, from HMRC's Web site: www.hmrc.gov.uk.

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