Q&As

To qualify for business property relief (BPR), does the property have to be owned by the business or can it be owned by the individual without reference to the business, which they then use for the sole purpose of conducting their business from on a day to day basis?

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Published on LexisPSL on 21/09/2016

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • To qualify for business property relief (BPR), does the property have to be owned by the business or can it be owned by the individual without reference to the business, which they then use for the sole purpose of conducting their business from on a day to day basis?

Business property relief or BPR is an inheritance tax relief that applies to reduce the value transferred by a transfer of value for inheritance tax (IHT) purposes.

When seeking to apply BPR, you first need to check if the property is ‘relevant business property’ and if so, whether it qualifies for 100% relief or 50% relief. The categories of relevant business property are set out in section 105(1) of the Inheritance Tax Act 1984 (IHTA 1984). For example, property consisting of a business or an interest in a business may qualify for 100% relief whereas land, buildings, machinery or plant used wholly or mainly for the purposes of a b

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