Business Property Relief

Business Property Relief

When determining the value of an estate’s assets and how much inheritance tax is due you, or your executors may be able to claim Business Property Relief which reduces the value of a business or its assets by either 100% or 50% so long as the business or asset is was held for more than two years from the date of transfer.

The relief can be claimed when assets are transferred during your lifetime or under your will.

Business Property Relief can be claimed at 100% on:

• a business or interest in a business
• shares in an unlisted company

Business Property Relief can be claimed at 50% on:

• shares controlling more than 50% of the voting rights in a listed company
• land, buildings or machinery owned by the deceased and used in a business they were a partner in or controlled
• land, buildings or machinery used in the business and held in a trust that it has the right to benefit from

The business must be ‘wholly or mainly’ trading to qualify. It has been established that at least 50% of the businesses assets must involve trading, in determining this turnover, profits and asset base may be considered individually, but the business will be assessed as a whole.