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McCall and another (PRs of McClean) (deceased) v HMRC [electronic resource]

Language: English Publication details: 2008Subject(s): Online resources: Summary: [2008] STC (SCD) 752, 7 April 2008. A landmark ruling in Northern Ireland shows that letting land on popular grazing agreements could jeopardise tax relief. The appellant personal representatives of the estate of a farmland owner (M) appealed against the respondent Revenue's decision that the fields owned by M at the time of her death were not relevant business property under the Inheritance Act 1984 S105. M had sub-let land under agistment agreements to local farmers. Upon M's death the local authority zoned the land for development use which greatly increased its value. Revenue determined that although the tending and letting of fields to graziers constituted a business, it was one which consisted wholly or mainly of the holding of an investment and so the land was not a relevant business property for the purposes of the Inheritance Tax Act 1984 S105. Held: appeal dismissed. The letting of the land was the dominant use and was for profit, which made it a common business. Customs and Excise Commissioners v Morrison's Academy Boarding Houses Association applied. The land was used not to make a living on but to make a living from, as such it was used as an investment.

[2008] STC (SCD) 752, 7 April 2008. A landmark ruling in Northern Ireland shows that letting land on popular grazing agreements could jeopardise tax relief. The appellant personal representatives of the estate of a farmland owner (M) appealed against the respondent Revenue's decision that the fields owned by M at the time of her death were not relevant business property under the Inheritance Act 1984 S105. M had sub-let land under agistment agreements to local farmers. Upon M's death the local authority zoned the land for development use which greatly increased its value. Revenue determined that although the tending and letting of fields to graziers constituted a business, it was one which consisted wholly or mainly of the holding of an investment and so the land was not a relevant business property for the purposes of the Inheritance Tax Act 1984 S105. Held: appeal dismissed. The letting of the land was the dominant use and was for profit, which made it a common business. Customs and Excise Commissioners v Morrison's Academy Boarding Houses Association applied. The land was used not to make a living on but to make a living from, as such it was used as an investment.