business property relief


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business property relief

a relief from INHERITANCE TAX on lifetime and death transfers of most forms of business property.
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The main reliefs available to farmers are Agricultural Property Relief ("APR") and Business Property Relief (BPR).
These include business property relief, agricultural property relief, the purchase of AIM shares, setting up trusts, and lifetime gifts made in the seven years immediately before death.
Arranged suitable life cover to protect newlyexposed assets against an Inheritance Tax charge after the loss of Business Property Relief, protecting the value of the family's hard-earned assets.
He said: "The quickest way of making a significant dent in your inheritance tax liabilities is to invest in assets that qualify for Business Property Relief (BPR), as this will give you relief from inheritance tax after just two years.
He says there is also the option of investing in assets which qualify for Business Property Relief, such as shareholdings listed on the Alternative Investment Market, which will be exempt from IHT if they are held two years immediately before death.
THE recent First Tier Tribunal decision in Pawson versus Inland Revenue Commissioners granted inheritance tax business property relief to an interest in a property used for holiday lettings.
AOnce you have run the guest house for two years it's likely that it will qualify for 100% Business Property Relief for inheritance tax purposes, providing you are still using it as a guest house when you die.
They must be shares in trading companies that qualify for business property relief - which excludes some popular sector, for example oil exploration and mining.
For inheritance tax, property owners would usually have a good claim for Business Property Relief (BPR), but I cannot see how BPR can survive once such properties are taxed as investments again and the capital gains relief is withdrawn.
AIM shares are currently treated as "unquoted" for IHT purposes, meaning that, if all other conditions are met, they will rank for full Business Property Relief (BPR) when Inheritance Tax is under consideration.

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