Inheritance Tax - Agricultural Exemption

drm256

Hi,

I wonder if anyone can help.

My father was a farmer, so following his recent death I'm aware that the land and a proportion of the farm house will be covered by the agricultural exemption as far as inheritance tax is concerned.

Will the farm, business be covered in the same way? By this I'm refering to the buisiness bank account and the cash within, and the assets of the farm business?

Thanks for your help.

Dan.

sneekymum

Yes - I believe it would (need to point out here that I'm not an expert - just an enthusiast...)

Buying such a business is a valid IHTax dodge.

Since your father has already passed away there's not much you can do to rearrange affairs anyway - ring your local tax office to find out the facts and you'll know what top expect.

It may be possible to adjust his will up to two years after his death, if it did not make the best use of the IHT allowances - subject to all beneficiaries agreeing.