A Big Tax Break From Farming

And A Possible Tax Refund

A useful change to Inheritance Tax rules was introduced in the Finance Act 2009.  Until that time, agricultural property relief could only be claimed where the farm property was in the United Kingdom, the Isle of Man and the Channel Islands.  The new rules mean that the relief can be claimed on relevant land anywhere in the European economic area which means all of the EU Countries plus Iceland, Liechtenstein and Norway.  A new planning opportunity arises because where Inheritance Tax was paid due to owning property in this economic area after 23 April 2003, the Inheritance Tax should not have been paid.  The UK Government had been guilty of discrimination.  However there are some time limits here. Normally you have claim tax repayment within six years and of course for any tax paid in early 2003 this would not be possible.  As a consequence HMRC have to allowed claims to be made until 21 April 2010.  There is a short window here to get your tax claim in!