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:

Description Relief
Unincorporated business 100%
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.

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