1(1)This paragraph applies where—U.K.
(a)there is a disposal of an asset which is, or is an interest in, agricultural property within the meaning of Chapter II of Part V of the M1Inheritance Tax Act 1984 (inheritance tax relief for agricultural property), and
(b)apart from this paragraph, the disposal would not fall within section 165(1) by reason only that the agricultural property is not used for the purposes of a trade carried on as mentioned in section 165(2)(a).
(2)Where this paragraph applies, section 165(1) shall apply in relation to the disposal if the circumstances are such that a reduction in respect of the asset—
(a)is made under Chapter II of Part V of the Inheritance Tax Act 1984 in relation to a chargeable transfer taking place on the occasion of the disposal, or
(b)would be so made if there were a chargeable transfer on that occasion, or
(c)would be so made but for section 124A of that Act (assuming, where there is no chargeable transfer on that occasion, that there were).
Marginal Citations