Paragraph 3 Agricultural property

United Kingdom

(1)

Section 116 (agricultural property relief) is amended as follows.

(2)

In subsection (1), for the words from “the appropriate” to the end substitute “50%”.

(3)

“(1A)
But so much of that whole or that part as—
(a)
constitutes a chargeable transfer that is not an occasion on which tax is chargeable under Chapter 3 of Part 3 (charges on certain settlements etc), and
(b)
does not exceed the amount of the 100% relief allowance available in relation to that chargeable transfer (see section 124D),
is to be treated (instead) as reduced by 100%, but only if the transferor’s interest condition is met.
(1B)
And so much of that whole or that part as—
(a)
constitutes a chargeable transfer that is an occasion on which tax is chargeable under Chapter 3 of Part 3, and
(b)
does not exceed the amount of the 100% trust relief allowance available in relation to that occasion (see sections 124G to 124K),
is to be treated (instead) as reduced by 100%, but only if the transferor’s interest condition is met.
(1C)
Subsections (1) to (1B) are subject to the following provisions of this Chapter.”

(4)

In subsection (2)—

(a)

in the words before paragraph (a), for “The appropriate percentage is 100 per cent.” substitute “For the purposes of subsections (1A) and (1B), the transferor’s interest condition is met”, and

(b)

omit the words after paragraph (c).

(5)

In subsection (4)—

(a)

for “appropriate percentage would be 100 per cent.” substitute “transferor’s interest condition would be met”, and

(b)

for the words from “the appropriate percentage”, in the second place it occurs, to the end substitute

“subsections (1A) and (1B) have effect as if—
(a)
the transferor’s interest condition were met, and
(b)
after paragraph (a) of each subsection there were inserted—
“(aa)
does not exceed the amount which would have attracted relief under Schedule 8 to the Finance Act 1975, and””.