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I7.381 Introduction to APR clawback

Agricultural property relief (APR) can be restricted on lifetime transfers made after 17 March 1986. The restrictions take the form of a clawback of APR that was available as at the time of the lifetime transfer if further conditions relating to events subsequent to the transfer are not also met. Lifetime transfers that are potentially exempt and lifetime transfers that are immediately chargeable are treated somewhat differently under the clawback rules.

A potentially exempt transfer (PET) only becomes a chargeable transfer if the transferor dies within seven years of its being made. Unless the further conditions described below are fulfilled, APR will not apply to reduce the value transferred by the potentially exempt transfer which has become chargeable and in relation to which APR would otherwise apply¹. Apart from the provisions of IHTA 1984, ss 124A, 124B, the availability of APR would depend entirely on the circumstances at the time when the PET was made, irrespective of what happened to it after the transfer. If the conditions are not fulfilled