SIPP-held farm IHT

[briancoat]

From 2027, SIPP will be part of the estate foe IHT and APR will be reduce from 200% to 50% (above £1m),

If someone used their SIPP to buy their farm (SIpp owns the farm) will (the now/reduced) APR apply, of is the full IHT rste paid because it is in a pension?

[AGoodman]

APR could apply theoretically. BUt:

1. Can a SIPP own agricultural land? (I don't know)
2. Would you find trustees willing to buy it?
3. Would the pension fund trustees be farming the land? (i've never heard of a pension fund farming). If not, they have to hold the land for 7 years before they stand a chance of qualifying.
4. There would be all sorts of complications re: income tax etc for no particular advantage

[AGoodman]

NB, turns out the answer to my 1 and 2 are yes and yes.