Business Property Relief (BPR)

Why we do business property relief

BPR, introduced in 1976, means a family business can now be passed down through generations with no Inheritance Tax.  The possibilities where widened in 1996 to include Limited Companies.

If you buy and hold shares in qualifying companies, you can pass on these shares if you wish, without any IHT liability as long as these rules are adhered to:-

1. Shares are held for at least two years and they are still held on death.

2. The company must qualify for BPR at the point of the shareholder’s death.

3. You are able to purchase any number of shares as you desire. There are no upper limits, as long as conditions above are met. The total value of the investment is entirely IHT exempt. Please be aware that such tax benefits and tax rules can change.

Who we do it for

You must own either a privately owned or unquoted company. Some AIM listed companies are able to qualify, however many of them do not.  The key requirement is that the business must be trading – it must not be a technical only company that simply holds investments, cash assets or property.

For example, a holiday letting business is considered a property investment business and is excluded from BPR. However a real, trading property development business can be accepted under the scheme.

Please note that a company registered as qualifying, now may have their situation reviewed in the future, to ensure it still qualifies and of course future laws may also be amended.  HMRC will only confirm that shares qualify for BPR after the investor’s death, so we always check with them.

The results you can expect

We can ensure that your business continues to operate.

We can help reduce tax and in certain cases, stop tax altogether.

What to do now

We would love to help you so please call Sarah on 020 3858 0307  to book your free phone consultation or to arrange for Jeff Meers to visit you at your home or if you prefer at our office by Victoria station.