This case involves a claim for agricultural property relief (APR) on a bungalow occupied for many years by the Mr Atkinson.
In 2002, Mr Atkinson became ill and, after some time in hospital, entered a care home where he stayed until his death in 2006.
During that time, his daughter-in-law and grandson looked after the bungalow which remained furnished and contained the Mr Atkinson’s possessions.
He remained a partner in the farming business and took part in discussions relating to the farm at least once a week.
The case for the executors was that the property was occupied by Mr Atkinson and the two other partners (his son having died some time previously) i.e. “by him or another” as in (b) above for the purposes of agriculture. HMRC considered that agricultural property relief was not available because Mr Atkinson was forced by ill health to live in a care home for the last few years of his life.
Agricultural property relief is given on the agricultural value of agricultural land and includes such cottages, farm buildings and farmhouses, provided that the individual occupied the property for the purposes of agriculture throughout the two years ending with the death.
The First Tier Tribunal held that APR was due in the circumstances and the appeal was allowed in full.