Commentary

I7.194 BPR clawback and replacement property

IHT, trusts and estates

I7.194 BPR clawback and replacement property

I7.194 BPR clawback and replacement property

Where the original property is not still owned by the transferee at the transferor's death (see I7.192 for the significance of this), the relief may still be available in relation to property which represents it as set out below.

First, there are provisions concerning shares owned by the transferee immediately before the transferor's death, or his own earlier death, which represent the property he acquired under the transfer. If they would under any of TCGA 1992, ss 126–136 (reorganisation of share capital etc) be identified with the original property or part of it, they are treated as the original property or that part of it1. See Example 6 in I7.195.

Shares issued in consideration of the transfer of a business consisting of the original property (or part of it) are treated in the same way2. See Example I7.195. It is not entirely clear that these provisions are cumulative, ie that shares resulting from a reorganisation of shares originally issued in consideration of the business originally transferred would be treated as the original property, but it is thought that they are. They are cumulative with the rollover provisions described below3.

Secondly, there is provision for rollover from the original property to new business property ('the replacement property'). There can be different rollovers at different times for different parts of the original property, but no further rollover from any replacement property to further property. If the rollover is into business assets which are or include agricultural property, the

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