Inheritance Tax Act 1984 section 16

Grant of tenancies of agricultural property

Section 16 deals with the inheritance tax treatment of granting a tenancy over agricultural property, providing that such a grant is not a transfer of value where certain conditions are met.

• The grant of a tenancy of agricultural property is not a transfer of value if it is made for full consideration in money or money's worth.
• The agricultural property must be located in the United Kingdom.
• The tenancy must be for agricultural purposes.
• The definitions of "agricultural property" and "agricultural purposes" follow those used in the agricultural property relief provisions (sections 115 onwards).