Question 1

Section B: Case 2 - Arthur Pendelton's Estate

Scenario: Arthur Pendelton died on 15 February 2024. He owned a working farm, 'Oakwood Farm', which he had actively farmed himself for the last 15 years. The farm consists of agricultural land, a farmhouse where Arthur lived, and two farm cottages occupied rent-free by his farm workers.

Question: Which of the assets comprising Oakwood Farm will qualify for Agricultural Property Relief (APR) at 100%?

Accepted Answer

Evaluate each asset against the APR criteria. Agricultural land qualifies. A farmhouse qualifies if it is of a character appropriate to the property. Farm cottages qualify if occupied by farm workers. Since Arthur farmed it himself for >2 years, the rate is 100%.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Excluding the farmhouse or cottages, thinking only the bare land qualifies.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 5

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