Someone can give away business property or assets while they’re still alive and the estate can still get Business Relief on Inheritance Tax, as long as the property or assets qualify.
How to get Business Relief on a gift
If someone gives away business property or assets, the recipient must keep them as a going concern until the death of the donor if they want to keep the relief.
They can:
replace the property or assets - like machinery - with something of equal value if it’s for use in the business
only get relief if the donor owned the business or asset for at least 2 years before the date it was given
When is a gift no longer liable for Inheritance Tax
Any gift made more than 7 years before the donor’s death doesn’t count towards their estate for Inheritance Tax purposes.
You may have to pay Capital Gains Tax or Income Tax if you sell, give away or exchange (‘dispose of’) an asset or property if it’s gone up in value during the time you owned it.