Inheritance Tax Act 1984 section 169

Farm cottages

Section 169 deals with how farm cottages occupied by agricultural workers should be valued for inheritance tax purposes, ensuring that any additional value arising from their suitability as general residential accommodation is disregarded.

• Applies to cottages that form part of agricultural property and are occupied by persons employed solely for agricultural purposes on that property.
• Any additional value the cottages might have because they would be suitable as homes for people not employed in agriculture must be ignored when valuing the agricultural property.
• The effect is that the cottages are valued only by reference to their agricultural use, not their potential open-market residential value.
• The terms used in this section carry the same meanings as those in the agricultural property relief provisions in Chapter II of Part V of the Inheritance Tax Act 1984.