Landowners and farmers have been warned by Susie Swift of accountants Saffery Champness to ensure that their use of property matches the rules to benefit from specific tax reliefs.
The move follows a recent announcement that the National Audit Office (NAO) is to launch an investigation into the misuse of Agricultural Property Relief (APR), Business Property Relief (BPR) and other reliefs from Inheritance Tax (IT).
An NAO report has established that tax reliefs cost seven times the value of the Inheritance Tax collected, that half the number of estates big enough to pay IHT escape it due to tax reliefs and exemptions, and that APR/BPR will cost the Treasury £800m in the tax year 2014-15, more than double the cost in 2008-09.
Ms Swift said: "There will be far greater scrutiny of applications for such reliefs and, if the rules are not met to the letter, then we can expect to see more rejections and consequently as a consequence more appeals."
Market round-up
The Cumberland and Dumfriesshire Farmers Mart sold 152 store heifers in Dumfries yesterday to a top of 253.3p per kg and an average of 209.4p (-6p on the previous sale), while 142 store, beef-bred bullocks peaked at 282p and levelled at 226.4p (-4p). Forty-three store, B&W bullocks sold to 184.2p and averaged 140.2p.
John Swan Ltd sold 45 prime heifers in St Boswells yesterday to a top of 256p and an average of 216.8p (+3.8p), while 21 prime bullocks peaked at 249p and levelled at 216.8p (+8.3p).
In the rough ring 26 beef-type OTM cattle averaged 131.8p (-13p).
The firm also sold 2584 prime hoggs to a top of £120 per head and 251.3p per kg to average 225.3p (+10p).
The 242 cast sheep forward saw heavy ewes sell to £119 for Texels and average £82.40, while light ewes peaked at £98 for Cheviots and levelled at £55.26.
Harrison & Hetherington Ltd sold 14 prime heifers in Carlisle yesterday to a top of 214.5p and an average of 178.8p (-30p), while 29 prime bullocks peaked at 231.5p and levelled at 181.2p (-28.5p). Sixty-one prime, beef-bred bulls sold to 213.5p and averaged 168.5p (-24p), while 67 prime, dairy-bred bulls peaked at 159.5p and levelled at 121.6p (-17.1p).
In the rough ring 73 beef cows averaged 134.2p (-20.3p) and 131 dairy cows levelled at 107.3p (-5.3p). Five bulls averaged 114p (-40.4p).
The firm also sold 2052 prime hoggs to a top of £123.80 and 334.6p to average 214.6p (+1.8p). The 82 cast sheep forward saw ewes sell to £135.50 for Texels.
Messrs Craig Wilson Ltd sold 2322 prime hoggs at Ayr yesterday to a top of £116 and 248.8p to average 210.2p (+7.1p).
The firm also had a smaller show of 355 cast sheep forward when all classes were £5-£7 dearer on the week. Ewes sold to £152 for Texels and £84 for Blackfaces.
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