Business Property Relief clarification on ownership period

[knowledgegap]

Hi,

I just wanted to clarify my understanding of the ownership period for shares to qualify for BPR if I may?

My parents have a 35% stake in an unquoted trading company that would appear to qualify for BPR.

Both parents are elderly with an unknown life expectancy but have held the shares for many years.

My mother holds the majority of the shares for historical tax purposes.


My father is concerned that on a very good day my mothers estate may go over the £2 million limit
introduced regarding the Residential Nil Rate Band. It would depend on how a minority shareholding was valued...


Reading generally I understand that BPR requires that the shares be held for a minimum of 2 years.

My Question
If shares are transferred between spouses at this stage would the BPR be affected if one of them died within 2 years?

[AGoodman]

No, it should not be affected. There is a specific provision to maintain BPR on qualifying assets on a transfer to a spouse s.109(1) IHTA.

You will also have to consider CGT but if the shares are business property holdover relief may be available under s.165 TCGA.