Inheritance Tax Act 1984 section 115

Preliminary

Section 115 sets out the key definitions and scope for the agricultural property relief provisions, including what counts as agricultural property, how agricultural value is determined, and the geographical limits of the relief.

• Agricultural property includes agricultural land, pasture, associated woodland, buildings for intensive livestock or fish rearing, and appropriate cottages, farm buildings and farmhouses with their land
• Agricultural value is the value the property would have if restricted by a permanent covenant to agricultural use only
• Horse breeding, rearing and related grazing on a stud farm are treated as agricultural activities, and related buildings count as farm buildings
• The relief only applies to agricultural property located in the United Kingdom, the Channel Islands, the Isle of Man, or a European Economic Area state at the time of the transfer