Commentary

I5.1018A Trusts—business asset disposal relief

IHT, trusts and estates

I5.1018A Trusts—business asset disposal relief

I5.1018A Trusts—business asset disposal relief

Business asset disposal relief (previously known as entrepreneurs' relief before April 2020) applies to a disposal of trust business assets, which occurs when certain conditions are met1:

  1.  

    (a)     the trustees of a settlement make a disposal of business assets

  2.  

    (b)     there is an individual who is a qualifying beneficiary, and

  3.  

    (c)     the relevant condition applicable to the type of asset disposed of is met

Settlement business assets

Settlement business assets are either2:

  1.  

    •     assets which form part of the settled property and which consist of (or of interests in) shares in or securities of a company, or

  2.  

    •     are assets (or interests in assets) used or previously used for the purposes of the business

Qualifying beneficiary

An individual is a 'qualifying beneficiary' if, under the settlement, he has an interest in possession otherwise than for a fixed term in the whole of the settled property, or a part of it which consists of or includes the settlement business assets disposed of3.

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