Business Property Relief

[shaner01]

If an expert can say more,please......discretionary trust upto nil rate band..."however many such shareholdings will qualify for Business Property Relief and therefore larger transfer will be possible"I wonder how much larger without trigering 20% IHT tax on the trust.

[Lee Young]

If the shareholdings qualify for 100% relief then all of them as the tax value going in is zero. If they qualify for the reduced rate of 50% relief, then up to the value of the available nil rate band taking into account the non relieved assets.

However, the tax values are ignored when looking at exits in the first 10 years - therefore the real values may well give rise to a tax charge (up to a maximum of 6%) during that time.