Business Property Relief is a valuable tax relief designed to encourage continuity for your business and the passing on of family businesses. It provides an exemption from Inheritance Tax on qualifying business assets when they are passed on during your lifetime or through your Will.
To qualify for Business Property Relief, the assets must be relevant business property held for at least 2 years, for example:
shares in unlisted companies
business assets used in a business you control, or
certain types of land, buildings, and machinery used for business purposes.
The level of Business Property Relief granted varies depending on the asset and whether it is used, for example, as a business asset or used by a company or partnership connected with you. For qualifying assets, Business Property Relief can provide 100% relief meaning the entire value of the asset is exempt from Inheritance Tax.  As with all tax related matters, this will vary depending on the business involved.
Accurately assessing Business Property Relief can make all the difference when planning for any tax liabilities in the future, which our Tax Advice and Tax Planning advisors can assist with.