Inheritance Tax and BPR Flashcards
What is business property relief (BPR)?
BPR provides that on death, there is no charge to IHT in respect of the following business assets:
-an interest in an unincorporated business
-the value of unlisted company shares relevant to trading activities
There is a 50% reduction of the value transferred for IHT purposes of:
-listed company shares where the transferor had voting control immediately prior to the transfer
-land, buildings, plant and machinery owned by the transferor but used either (a) in the business in which they were a partner or (b) a company (listed/unlisted) in which they had voting control. Control means more than 50% voting power on all resolutions.
Assets must be owned for at least 2 years/be a replacement for assets with a combined ownership period of more than 2 years.