Inheritance TAX – BPR

23 February 2016

Inheritance TAX – BPR

Business property relief (BPR) could reduce or even remove the inheritance tax payable on business assets.

BPR was introduced by the Labour government in 1976 to enable family business to continue and be passed down generations.

BPR is given at 100% on the following assets:

·         Shares in an Unquoted Trading Company (not traded on a stock exchange)

·         A sole trader business or interest in a business such a Partnership

BPR is given at 50% on the following assets:

·         Quoted shares controlling more than 50% of the voting rights.

·         Land, building, plant and machinery mainly used for a business carried on by a partnership or company (of the deceased) but not a sole trader

However to qualify for BPR the deceased must have owned the business or asset for minimum of two years before he or she died.

If the property or asset is given away before death BPR may be available so long as they remain a going concern until he or she dies.

If the donor survives more than seven years after the date of the gift then the property or asset will fall out of the charges so BPR becomes redundant.

If you require any assistance with any aspect of your tax affairs please contact us or get in touch today by calling 0203 039 3993.

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