The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
BPR reduces the transfer of value for inheritance tax purposes. BPR is given before any annual exemptions.
BPR applies to lifetime transfers as follows:
BPR is also available to reduce the value of business assets in a death estate. BPR is given automatically if the conditions for relief are satisfied. There is no formal requirement to make a claim.
See also Simon’s Taxes Division I7.1 (subscription sensitive).
BPR is only given if a donor makes a transfer of ‘relevant business property’. The definition of relevant business property is given at IHTA 1984, s 105.
Transfers of a business or a share in a partnership qualify for BPR, but it is not available on the transfer of a single business asset.
Therefore if a sole trader transfers the whole of his business into a discretionary trust, the gift will qualify for BPR. However if he transfers part
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