Farmer disposes of his farmhouse and land February 2015. He inherited this in 1994 although his father lived and farmed in it until 2002. Does he qualify for entrepreneur relief or PRR on the farmhouse for the period his father lived there? How does one obtain a valuation of the farmhouse and land for 1994?
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Gift with reservation
by the sound of it, although it may have qualified for APR. Unlikely to be able to claim PRR for the father's occupation unless it was occupied under the terms of a settlement perhaps. ER could be some kind of possibility in the event that the accommodation was in fact living accommodation for workers. Happy to look at this on a paid basis if you want to PM me.
If father had life interest in the house, and your client inherited it subject to the father's occupation, then PPR relief will be available. There will be no GWR because the property was inherited and not gifted.
ER may be available on the disposal of the farm. Did father manage the farm for him, or did the son inherit the farm subject to the father's life interest?
Inherit
Maybe "inherit" has changed its meaning since i was in school.
But when I was in school you could only "inherit" something from someone who was dead.
As the client's father in this case farmed the property until 2002 the person from whom the client inherited it in 1994 cannot have been his father.
Hence my question.
John
I think Lynne's points that (i) it cannot be a GWROB if it was inherited (obviously from someone other than the father), (ii) PPR will be available if the father was a life tenant under a trust created in the unidentified deceased's will, and (iii) ER may be available, are all unaffected by who the deceased was.
I assume that you would just like to know?
Although I do understand that school has changed considerably in post-war years.
My point is not to ascertain who the deceased was, but just to be sure that the OP really means inherited, rather than gifted by his father during his lifetime. At least one previous poster assumed that it was the latter.
I don't think I suggested that you could inherit from someone who was not dead. You can, however, inherit something subject to the interest of someone else. eg I give my farm/ house to A. However, B can live in the house/work the farm until he dies, remarries, or for a specified fixed period. The consequence of this is that the house/farm is included in the estate of B if he dies when he has the life or fixed interest.
Sorry John
I can see it now. You are assuming that the OP went to a different school from you and has a different understanding of the meaning of inherit. Silly me.
Not per se
I can see it now. You are assuming that the OP went to a different school from you and has a different understanding of the meaning of inherit. Silly me.
Not per se, but because the first poster interpreted it the other way, and I thought it helpful to try and establish whether that interpretation or mine was the right one.
Ha ha ha, the joys of tax
yes, I was assuming that there was a gift from father during his lifetime, to his son. that gift being the son's promised inheritance, as so often happens in farming families. Of course the house could have been inherited from someone else, that was why I said "by the sound of it".