Sarah Bradford explains the conditions to be met for a business to qualify for 100% business property relief for inheritance tax purposes.
Business property relief (BPR) is a valuable inheritance tax (IHT) relief, allowing certain types of business asset to be passed on IHT-free. There is also a 50% rate of relief for other eligible business assets that do not qualify for the 100% rate.
However, as with all reliefs, its availability is contingent on certain conditions being met, as only the ‘right’ type of business assets will qualify for the relief.
Although the relief was introduced to enable family businesses to be passed on IHT free, the scope of the relief has been widened since it was first introduced.
Nature of the relief
There are two rates of BPR – 100% and 50%. The relief is available on both lifetime and death
