Verdict reached in inheritance tax case

A recent case involving inheritance tax has come to a close, those interested in wills and probate matters have been told.

The case involved Agricultural Property Relief (APR) and which farmhouses were eligible for it.

A tax tribunal heard from executors for the estate of the deceased Dennis Golding, who are responsible for a 16-acre farm in Staffordshire.

The tribunal was told that these individuals had tried to reduce the inheritance tax that was due on the estate by asking for APR on the farm and house.

However, HMRC said that the farmhouse did not meet the criteria to qualify for the ARP, although the other buildings and land did.

In correspondence, the HMRC said that the house was not 'character appropriate' and that this is why they made the refusal.

Despite this, the executor emerged victorious from the tribunal, an important decision for those who own agricultural holdings.

People who own farmers and other property can also reduce the amount of inheritance tax their will beneficiaries have to pay by making plans for this as soon as possible and determining if they fall below the nil-band rate threshold.

Published by Hannah Carr