Finance Act 2009

122 Inheritance tax: agricultural property and woodlands relief for EEA land

(1) Part 5 of IHTA 1984 (miscellaneous reliefs) is amended as follows.

(2) In section 115 (agricultural property relief: preliminary), in subsection (3), insert at the end “(or, in the case of property outside the United Kingdom, the Channel Islands and the Isle of Man, if it were subject to provisions equivalent in effect to such a covenant).”

(3) For subsection (5) of that section substitute—

“(5) This Chapter applies to agricultural property only if it is in—

(a) the United Kingdom, the Channel Islands or the Isle of Man, or

(b) a state, other than the United Kingdom, which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the transfer of value in question.”

(4) In section 116 (agricultural property relief: the relief), insert at the end—

“(8) In its application to property outside the United Kingdom, the Channel Islands and the Isle of Man, this section has effect as if any reference to a right or obligation under the law of any part of the United Kingdom were a reference to an equivalent right or obligation under the law governing dispositions of that property.”

(5) In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in the United Kingdom”.

(6) After that subsection insert—

“(1A) But this section applies only if the land is in the United Kingdom or another state which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the person’s death.”

(7) The amendments made by this section have effect in relation to transfers of value where the tax payable but for this section (or, in the case of tax payable by instalments, the last instalment of that tax)—

(a) would have been due on or after 22 April 2009, or

(b) was paid or due on or after 23 April 2003.

(8) Where tax falling within subsection (7) has been paid, Her Majesty’s Revenue and Customs must repay the tax (together with interest under section 235(1) of IHTA 1984) if, but only if, a claim for repayment is made on or before—

(a) the date determined under section 241(1) of that Act as the last date on which the claim may be made, or

(b) 21 April 2010,

whichever is later.

(9) Where, by virtue of the amendments made by subsections (5) and (6), an election is made under section 125 of IHTA 1984, that election must be made on or before—

(a) the date determined under section 125(3) as the last date on which the election may be made, or

(b) 21 April 2010,

whichever is later.