The recent case of Mr Golding may be of interest to those in the farming community.
Whilst a little unusual in its facts, HMRC lost the case and Agricultural Property Relief was given on the value of the house.
Whilst only serving a very small acreage (around 16 acres of farmland), the farming activities had declined over the years such that Mr Golding sold eggs to customers and grew vegetables for his and his customers consumption. He had however recently acquired a tractor and a bailer.
The farmhouse was somewhat archaic with no electricity in its three bedrooms. There were also some outbuildings, sheds and other buildings that HMRC accepted were used for farming – produce was also stored in the bedrooms!
The full facts of the case are not expanded out here but those with a particular interest may wish to follow the attached link to the tribunal website (http://www.financeandtaxtribunals.gov.uk/Aspx/default.aspx).
The corollary to this case is that as ever a case will turn on the individual facts and as far as APR is concerned it is important to look at the farmhouse and ensure that it is of an appropriate character in relation to the surrounding farmland and the activities being undertaken.