Farming is a capital-intensive industry, in which the rate of return on capital is low, compared to income from other forms of property. The result is that agricultural property is peculiarly vulnerable to inheritance tax, since the tax payable on capital value transferred may be beyond the means of the person paying it, without selling off some of the property itself. This is alleviated in part by the option to pay tax in instalments (see ¶183-215), but chiefly by a special relief for agricultural property which allows a percentage reduction in the value transferred for inheritance tax purposes.

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