[IHTM28021] IHTM28021 – Liabilities: restricted deductions: borrowed money used to acquire assets that qualify for agricultural relief
IHTA84/S162B(3) applies where money was borrowed to acquire assets that qualify for agricultural relief or to enhance or maintain the value of these assets. Where this is the case, the liability firstly reduces the value of the assets that qualifies for relief, IHTA84/S162B(4). This is the case even if the liability is actually secured against other assets in view of the amendments to IHTA84/S162(4) (IHTM28392). Agricultural relief (IHTM24000) is then given against the agricultural value after deduction of the liability.
Any remaining liability may then be set against the assets that are chargeable to tax.