Acquiring premises

By Tolley in association with Peter Rayney of Peter Rayney Tax Consulting Ltd
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The following Trusts and Inheritance Tax guidance note by Tolley in association with Peter Rayney of Peter Rayney Tax Consulting Ltd provides comprehensive and up to date tax information covering:

  • Acquiring premises
  • BPR implications for owner managers
  • Planning issues
  • Property held by partnerships

BPR implications for owner managers

Business property relief (BPR) is likely to be one of several factors considered when deciding whether to acquire or hold the trading premises personally or through the owner-manager’s company.

For further information on ownership issues for the owner-manager, see the Personal or company ownership guidance note in the OMB module (subscription sensitive).

The following points need to be considered from a BPR perspective.

Personally owned land and buildings

Personally owned land and buildings used wholly or mainly for the purposes of a company’s business will qualify for 50% BPR, provided, the owner-manager controls the relevant company.

The 50% BPR is given irrespective of whether the owner-manager charges a market rent for the use of the property.

IHTA 1984, ss 104(1)(b), 105(1)(d)

More on BPR planning: