Relief is available at 100 per cent in four sets of circumstances:

(1) Right to vacant possession

Where the interest of the transferor in the property immediately before the transfer carries the right to vacant possession, or the right to obtain it within the next 12 months, relief is at 100 per cent (IHTA 1984, s. 116(2)(a)).

Example

Arnold, who is a farmer owning his farm, dies leaving an estate consisting of the farm, worth £400,000, and other assets amounting to £80,000 to his son, Bertram. The transfer of value on Arnold's death is reduced by £400,000.

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