business property relief


Also found in: Financial.

business property relief

a relief from INHERITANCE TAX on lifetime and death transfers of most forms of business property.
Collins Dictionary of Law © W.J. Stewart, 2006
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Agricultural and business clients Business Property Relief (BPR) can provide up to 100% relief from IHT on farms where diversification is part of the evolved agricultural business.
This form of tax relief, known as Business Relief - formerly Business Property Relief - was introduced in 1976.
From a tax perspective, there is an ongoing discussion over whether Business Property Relief (BPR) can be applied to such a diversification, and what the differentiation is between a holiday cottage business and a property investment.
The Government changed the rules in 2013 to allow AIM-listed shares to be held in an ISA and to qualify for Business Property Relief (BPR).
The aim of the research was to gain insight into peoples' understanding of Agricultural Property Relief ('APR') and Business Property Relief ('BPR') and how the reliefs are used in succession planning.
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."
The nature of the business may change and the business may hold large cash reserves, which will not qualify for Business Property Relief. For this reason, the will may provide that the business interest is transferred to a discretionary trust.
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.
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