BPR on lifetime transfers where death is within seven years (BPR ‘clawback’)

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

BPR on lifetime transfers where death is within seven years (BPR ‘clawback’)

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

This guidance note considers the business property relief (BPR) position on death of chargeable lifetime transfers (CLTs) and potentially exempt transfers (PETs) made within seven years of death. The BPR position will be re-tested on a death of the transferor within seven years of the gift. The property must, broadly, qualify for BPR at that time. Where the property no longer qualifies for BPR, the relief will be subject to a clawback and the property may be subject to a charge to inheritance tax (IHT). However, the effects of the clawback are different for the two different types of transfer. Where the original business property has been disposed of there are provisions for replacement property to qualify for the relief.

BPR on the initial gift

Where the original gift is a chargeable lifetime transfer (CLT), any BPR due will have been taken into account and reported to HMRC on one of the IHT100 suite of forms (see the IHT100 completion ― overview (before August

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more Read more

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more