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Home Farm finance & grants Landmark tax tribunal cases helps protect farmhouses from IHT, say Smith Gore
Landmark tax tribunal cases helps protect farmhouses from IHT, say Smith Gore PDF Print E-mail
Written by Ian Hayes   
Thursday, 18 August 2011 14:41

 Rupert Clark, Smiths Gore

Her Majesty’s Revenue and Customs have failed to appeal against a landmark tax tribunal which will help protect farmhouses from Inheritance Tax Liability. The case of Golding v Her Majesty’s Revenue and Customs (HMRC), now known simply as the ‘Golding Case’ is welcome news for landowners generally who are hoping to reduce their liabilities for Inheritance Tax Purposes.

The facts of the case are that Mr Golding farmed a 16 acre small holding and on his death in 2007, his executors claimed Agricultural Property Relief (APR) on the farm to reduce the liability for Inheritance Tax on the estate. HMRC accepted the claim in principle but rejected the inclusion of the small three bedroom farmhouse, claiming it was not of appropriate character for the purposes of APR.

Mr Golding had grown vegetables and sold a few eggs and shortly before his death he had also purchased some farm equipment.

The judge concluded that historically the facts surrounding the case and the type of property, as well as Mr Golding’s intentions to carry on farming albeit in a limited capacity, demonstrated that the property was entitled to qualify for APR.

Rupert Clark, Head of Estate Management at Smiths Gore says: “We have been awaiting the outcome of this case which has turned out to be an important Judgement for certain rural taxpayers who can now expect to receive the tax relief they are entitled to.” 

Mike Harrison, a partner at Saffery Champness Landed Estates & Rural Business Group adds: “Farmers and their business activities change as they get older. Although Mr Goldings’s farming activities had declined in recent years, the reduction did not on its own exclude the property from APR.”


Last Updated on Sunday, 21 August 2011 18:21
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