Business Property Relief

Posted on Posted in Reliefs & Allowances

Business property relief is a relief from inheritance tax on a transfer of a particular business asset. If some of your wealth is invested in a business, you may find this post interesting.

 

What is a business property relief?

Relief is allowed on a transfer of certain properties whereby you can get either 50% or 100% of relief from inheritance tax.

 

Can you provide a list of such properties?

Business or an interest in the business

Business or an interest in the business

Shares in an unlisted company

Shares in a listed company (Shares must have more than 50% of the voting rights)

Land, Building or Machinery OWNED by the deceased BUT USED by their business. (Business could be a partnership or an LTD company but, not sole trader)

Land, Building or Machinery HELD in a trust BUT USED in a business carried on by the beneficiary of the trust.

 

Golden rule to remember.

The asset must have been held for at least 2 years before the death.