Inheritance Tax Act 1984 section 123

Provisions supplementary to section 122

Section 123 sets out the additional conditions that must be met for agricultural property relief to apply when the transfer of value involves shares or securities in a company that owns agricultural property.

• The company must have either occupied the agricultural property for agriculture for at least two years, or owned it for at least seven years (with it being used for agriculture throughout), ending with the date of transfer
• The transferor must have owned the shares or securities throughout the same minimum period — two years or seven years as applicable
• Where the shares replaced other eligible property (such as a farm or shares in another farming company), the ownership periods of the original and replacement property can be combined to meet the minimum holding requirements
• Occupation of the agricultural property by a person who later comes to control the company counts as occupation by the company itself