Relief - Lifetime and Death Flashcards
What is a Business Property Relief?
Reduces value of qualifying business property
What are the different relief rates for BRP?
100% or 50%
What qualifies for 100% BRP?
1) Unquoted shares (private);
2) Business or interest in business (sole trader / partnership)
What qualifies for 50% BRP?
1) Quoted shares where deceased had 50% shares;
2) Land / machinery used for business purposes
What are ownership conditions for Business Property Relief?
Must have owned asset for at least 2 years prior to relevant transfer
What are exceptions to the 2 year ownership rule for BRP?
1) Replacements for qualifying assets
2) If inherited
Which assets do not qualify for business property relief?
Businesses wholly / mainly dealing in shares, land, investment properties
What type of business does not qualify for BPR?
Investment businesses
What is Agricultural Property Relief?
Reduces IHT on agricultural value of qualifying land/businesses
What qualifies for APR?
1) Land used for agriculture;
2) Farmhouses and cottages (if occupied for agricultural purposes);
3) Partnership interest in farming business
What are the different relief rates for APR?
100% and 50%
What qualifies for 100% APR?
Owner occupiers and property let under post-1995 tenancy
What qualifies for 50% APR?
Property under pre-1995 tenancy
What is the rule on APR if the transferor occupied the property?
Must have owned it for 2 years
What is the rule on APR if someone else occupied the property?
Must have owned it for 7 years
Does APR or BPR apply first if they are both available?
Must apply APR first
Do agricultural buildings qualify for BPR or APR?
Both, so apply APR
Does livestock apply for BPR or APR?
BPR
