Commentary

I7.112C BPR for dealing, holding and group companies

IHT, trusts and estates

I7.112C BPR for dealing, holding and group companies

I7.112C BPR for dealing, holding and group companies

Shares or securities of a company wholly or mainly dealing in securities, stocks, shares, land or buildings or making or holding investments, are not eligible for relief unless:

  1.  

    •     the company's business is that of a market-maker (see I7.112) or discount house operating in the UK, or

  2.  

    •     the shares are shares or securities of a company whose business is mainly that of being a holding company of one or more companies whose business is not dealing in securities etc or holding investments1

For cases where this second exception was held not to apply, see Phillips & Others (Phillips' Executors) v HMRC2 and Piercy (executors of) v HMRC3.

The issues as to whether a company has a business falling within the exception for holding investments are the same as for sole traders or partnerships.

For the cases on this much-litigated topic, and HMRC

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