I7.173 BPR and loans

I7.173 BPR and loans

Loans are not part of a business, so a gift made by increasing one creditor's loan account and debiting another's (for example in a partnership or a company) does not attract business property relief (BPR), but transfers between the capital accounts of partners do qualify (see I7.111).

Where loans have been incurred by a sole trader for the purposes of his business they will be a deduction in valuing the net value of his business on which business property relief may be obtained1, and when a partnership share is valued any loans incurred by the partnership as

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