Mark McLaughlin looks at an inheritance tax business property relief pitfall for company owners.
Business property relief (BPR) offers inheritance tax (IHT) relief (at 100% or 50%) on transfers of value attributable to ‘relevant business property’ where certain conditions are satisfied.
For example, shares in an unquoted trading company potentially qualify an individual shareholder for BPR (at 100% up to an upper threshold of £2.5m from 6 April 2026, and at 50% thereafter), subject to general restrictions where the company’s activities consist wholly or mainly of dealing in stocks or shares, land or buildings, or making or holding investments. This
