August 31, 2011
The Inheritance Tax Act 1984 allows a number of reliefs and exemptions for inheritance tax, which currently applies at a rate of 40%. One such relief, agricultural property relief, has been the subject of recent litigation regarding the character of a farmhouse. The case of Golding v Her Majesty’s Revenue and Customs, concerned a challenge by Mr Golding’s executors to a determination notice issued by HMRC ruling that the farmhouse in question was not of a character appropriate to attract agricultural property relief.
In a preliminary ruling of the Tribunal, it was ruled that the farmhouse was of relevant character to attract the relief and reduce the inheritance tax liability of the estate accordingly. HMRC had a limited period within which to appeal the decision and it now appears that they will leave it unchallenged.
Solicitor, Alan Neale, who had conduct of the matter on behalf of Mr Golding’s Executors said “It’s no secret the Revenue were anxious to win this case and the successful outcome has definitely torpedoed their endeavours to deny more farming families tax relief. The volume of interest generated has been phenomenal and it’s clear this is now a landmark case in relation to tax relief on farmhouses. A significant amount of cases have been held up awaiting the outcome of this decision and now it has been successfully concluded, I hope it will mean farming families receive the tax relief they are entitled to.”
