Commentary

I7.150 BPR and replacement property

IHT, trusts and estates

I7.150 BPR and replacement property

Replacement property, successions and successive transfers

I7.150 BPR and replacement property

Business property that has replaced other property does not qualify for the relief unless the transferor owned it and the replaced property taken together for at least two years out of the five immediately preceding the transfer1. A further condition is that, had the replaced property been transferred immediately before its replacement, it would itself have qualified for the relief but for the two-year minimum ownership requirement (see I7.140)2. Any property that the replaced property replaced in its turn is also taken into account.

Where one or more replacements have been made during the five-year period, the relief cannot exceed 'what it would have been had the replacement or any one or more of the replacements not been made'3. Although a literal interpretation of this passage would appear to require a valuation of one or all of the replaced properties at the date of the transfer, HMRC takes the

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