Inheritance Tax Act 1984 section 114

Avoidance of double relief

Section 114 prevents the same property from benefiting from more than one type of inheritance tax relief, primarily ensuring that business property relief and agricultural property relief cannot both apply to the same portion of value.

• Where any part of the value transferred qualifies for agricultural property relief, that same part cannot also be reduced by business property relief — agricultural relief takes priority.
• The parties cannot choose between business relief and agricultural relief; agricultural relief is applied first as a matter of law.
• Business property relief may still be claimed on any excess value above the agricultural value, for example where farmland has development or mineral value.
• Where the value transferred has already been reduced by a credit for tax on the disposal of trees or underwood, business property relief applies to the already-reduced value, not the original value.