News reaches me of a tribunal case concerning agricultural property relief for a farmhouse. The taxpayer was elderly and had a smallholding on which he grew vegetables and sold eggs. The profits were low and HMRC suggested that the limited financial viability of the smallholding meant that the farmhouse was not of an appropriate character.
The Tribunal apparently took the view that in considering this relief it was necessary to have regard to the age of the taxpayer, and as he was elderly, one could not expect his activities to be extensive. They found that the history of the smallholding and the nature of the taxpayer’s activities meant that the house qualified for agricultural property relief.
More details of this helpful and interesting case will be available soon.