IHT Business Property Relief

Question 1

When is IHT charged

Answer 1

Value of deceased estate immediately before death

Question 2

What does business property relief do ?

Answer 2

Reducing value of business property

Question 3

When can someone claim business property relief

Answer 3

Can claim on property buildings unlisted shares machinery

Question 4

When is 100% relief available

Answer 4

People died after 6th april 1996

Reduction for

Transfers of business or interest in business eg partnership shares

Unquoted shares

Question 5

When is 50% relief available

Answer 5

Quoted shares in company which transferor controlled immediately before transfer

Land buildings machinery belonged to transferor but used mainly for business where person was a partner

For the business where transferor controlled company

Held in a trust where transferor had a right or benefit to use assets in the business

Question 6

When can person not claim relief

Answer 6

Business deals in stocks and shares, land, holding investments

Nom profit organization

Business is subject to contract for sale unless sale is to a company that will carry on and transferor is paid wholly in shares

Company being wound up

Question 7

What assets can’t be subject to relief

Answer 7

Of asset qualifies for agricultural relief

Was not used for business in 2 years before transferor passed it on as a gift either during life or in a will

Asset not required for the future of the business

If part of an asset is used in business that part might qualify for business relief