Paragraph 18 Amendment of Schedule A1

Schedule A1 to IHTA 1984 is amended as follows.

In the heading of Part 1 of that Schedule, after “property”, in the second place it occurs, insert “or UK agricultural property”.

In the following provisions, for “a UK residential property interest” substitute “relevant UK property”—

In that paragraph, in sub-paragraphs (4) and (5), for “UK residential property interest” substitute “relevant UK property”.

Before paragraph 8 (and before the italic heading before it) insert—

“Relevant UK property

7A

In this Schedule “relevant UK property” means—

(a)

UK agricultural property, or

(b)

a UK residential property interest.

UK agricultural property

7B

(1)

In this Schedule “UK agricultural property” means agricultural land or pasture in the United Kingdom and includes—

(a)

woodland and any building used in connection with the intensive rearing of livestock or fish if the woodland or building is occupied with agricultural land or pasture and the occupation is ancillary to that of the agricultural land or pasture, and

(b)

cottages, farm buildings and farmhouses, together with the land occupied with them.

(2)

For the purposes of sub-paragraph (1), the breeding and rearing of horses on a stud farm and the grazing of horses in connection with those activities shall be taken to be agriculture and any buildings used in connection with those activities to be farm buildings.”