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FTC Kit Question 22 AVA
Hi, i am confused in the b(i) part of the question as:
APR is reduced to 50% where the farm is a tenanted farm.But in this question it has been tenanted to farmers but 100% relief is given..How and why ? It should be 50% i guess. Kindly assist me in this.
Thanks
100 percent apr is given on the agricultural value of the farm if it is tenanted farm if and owned At least 7 years which I assume is the case in this question. The farm must still be owned by the donnee for apr to still be available at time of donors death. the farm must be based in the European economic area
I always understood it to be 100% as long as the property was either used by the deceased for the prior 2 years, or was leased to a tenant for 7 years
However, a quick look on HMRC website tells me that 50% relief can be applied, but mainly on tenancies that started prior to 1995, which I didn’t realise, there is also a brief note about it in the BPP text, but its so small I guess its not that relevant?
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