Case Law

Question 1

Antrobus Case - 5 tests for APR relief on farmhouses

Answer 1

2002 and 2005 (lands tribunal on qu. of land value - 30%)
The principles which were established for determining whether a farmhouse is of a character appropriate (section 115(2) Inheritance Tax Act 1984) to the agricultural property.
1. Examine the relationship between the size, content + layout with any farm buildings to the size of the area of land being farmed - decide if considered appropriate
2. Consider if house is proportionate in its nature and size to the requirements of the farming activities conducted on the agricultural land in question
3. so called ‘Elephant test’ knowing a farmhouse when you see one, as opposed to rural/country home
4. so called ‘Man on the rural Clapham Ominbus Test’/ Would an educated rural layperson regard the property as a house with land or a farm with a house?
5. History of the relationship between the farmhouse and the agricultural property/land

Question 2

McKenna case

Answer 2

Armander and others (Executors of McKenna dec’d) v HMRC [2006]
Definition of farmhouse and ‘character appropriate’ called into question (IHTA 1984 s115(2)).
McKenna had appointed an agent to help with running of the farm after Ts surrendered tenancy and entered into contract farming arrangements for arable farming but was still in management control of business. Farmhouse was not given APR + nor were some buildings found not to be in use for agriculture within the required period

Question 3

Stokes vs Cambridge