There are tax reliefs that can apply to agricultural properties. Certain properties will be eligible for Agricultural Relief, which means that it is possible to pass on some agricultural property free of Inheritance Tax (or at a reduced rate), either during your lifetime or as part of a Will.
Agricultural relief can be available at 100% or 50% depending on various factors. It is due at 100% if the following applies:
The owner of the land also farmed it themselves
Someone else used the land on a short-term grazing licence
The property was let on a tenancy that began on or after 1 September 1995
A property would also qualify for 100% relief if it was owned before 10 March 1981 and:
It would have qualified under Schedule 8 Finance Act 1975 if it was transferred before that date
The person who owned the property had no possible right to vacant possession between the date and the date of the current transfer
Any other cases see the relief due at a rate of 50%.