IHT

Question 1

What does business property relief do?

Answer 1

Reduces the value of business property given as a lifetime gift to a trust or at death. This is applied before any annual exemption is applied.

Question 2

For business property relief when is 100% relief applied?

Answer 2

If transfers:
* Sole trade business
* Partnership interest
* Shares in unlisted trading company

Question 4

For business property relief when is 50% relief applied?

Answer 4

If transfers:
* Shares in quoted trading company if donor has more than 50% of the company’s voting shares
* Land, buildings or plant and machinery used either by a partnership they are a member of or a company they control

Question 5

What are conditions for business property relief?

Answer 5

The business must be trading i.e. selling goods/services not merely investing.

Available if trading business is overseas.

Usually donor must have owned the business property for at least two years for the relief to apply.