Commentary

I7.192 BPR clawback—the main conditions

IHT, trusts and estates

I7.192 BPR clawback—the main conditions

I7.192 BPR clawback—the main conditions

The conditions which have to be fulfilled in relation to a lifetime transfer, in order that business property relief (BPR) which applied at the time of the transfer should also apply on death (within seven years), are, in relation to relevant business property other than controlling holdings of securities or quoted shares and holdings of unquoted shares, as follows:

  1.  

    (a)     the transferee (defined as described in I7.193) has owned the original relevant business property in relation to the transfer I7.194 continuously from the transfer until the transferor's death or the transferee's own earlier death1, and

  2.  

    (b)     circumstances are such that the original property would qualify for BPR (apart from the two-year ownership conditions in IHTA 1984, s 106) on a notional transfer by the transferee immediately before the transferor's (or his own earlier) death2

  3.  

    The property does not have to qualify at the transferor's (or transferee's

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