Did you know that Business Property Relief (BPR) is one of the most highly prized agricultural inheritance tax reliefs available? Yet numerous landowners are not taking advantage of it because they are unaware of the difference between “agricultural use” of land and “equestrian use” of land, for tax purposes.

This context is very important for the eligibility for inheritance tax APR (Agricultural Property Relief) and BPR.

Afford Bond Partner and agricultural accounting expert, Lindsay Beeston explained: “BPR can reduce the taxable value of business property by up to 100% when applied correctly, and therefore save farmers and land-owners considerable amounts of inheritance tax (IHT).

” For example, one of the most useful agricultural definitions is demonstrating to HMRC that the land is used for the grazing and breeding of horses. And recent tax law cases have highlighted the need for enhanced services with regards to liveries to ensure as many reliefs are available as possible. This can be further enhanced if planning permission has been granted for the use of land for equestrian purposes.”

If you have all the legal documents in place, and also have a hands-on livery business taking place on the land, there should be no major issues in claiming Business Property Relief for inheritance tax purposes.

To qualify for this inheritance tax relief if you have a livery business, ask yourself:

– what level of service does the livery provide? The more diverse the services which are provided, the more of a business venture you have.

– who carries out those services? The more the business owner does the better.

If you are uncertain if you are making the most of your inheritance tax relief, speak to our expert agricultural accountant before proceeding further. Partner, Lindsay Beeston, is head of the agricultural accounting team at Afford Bond Chartered Accountants and can be contacted by email at Lindsay.Beeston@affordbond.com to discuss individual circumstances.