Business Property Relief Print
Business Property Relief (BPR) may be available to reduce the charge on transfer of relevant business property, subject to the property having been owned for at least 2 years. This relief reduces the tax chargeable by up to 100% depending upon the nature of the property.
A brief summary of the BPR available follows:
|Unquoted securities which either by themselves or with other such securities gave the transferor control||100%|
|Any unquoted shares in a company not listed on a recognised stock exchange but including AIM shares||100%|
|Shares or securities giving control of a quoted company||50%|
|Land, buildings, machinery or plant in a partnership or in a controlled company or in a settlement||50%|
The above reliefs are only due in respect of business assets. Any excess cash, or investments included within a company may be excluded from BPR. It is however worth highlighting that shares in an AIM listed company qualify for BPR.
Anti-avoidance provisions exclude BPR on gifts where the transferor dies within 7 years of making the gift, and the transferee disposes of the gift prior to the transferor’s death.