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Where Taxpayers and Advisers Meet

Business Relief for Inheritance Tax

bifster2000
Posts:2
Joined:Mon Mar 11, 2019 1:53 pm
Business Relief for Inheritance Tax

Postby bifster2000 » Mon Mar 11, 2019 2:45 pm

My Father in Law is planning to leave his two children, a cafe and a fish and chip shop in his will - am i right in thinking that these would qualify for 100% Business Relief for IHT?

Thanks for your help.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Business Relief for Inheritance Tax

Postby AGoodman » Mon Mar 11, 2019 4:36 pm

Probably but it is worth getting the structure/business checked by a private client solicitor or accountant as there are some fiddly terms and you need to ensure that the business does not have any "non-business" assets such as cash balances in excess of working capital.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Business Relief for Inheritance Tax

Postby AnthonyR » Tue Mar 12, 2019 1:19 pm

The other thing to look at is who runs the business.

If FIL lets out the shops to third parties who let them out then he probably won't get BR (it's an investment). If he runs them himself (including if he employs a manager) then he probably will.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

bifster2000
Posts:2
Joined:Mon Mar 11, 2019 1:53 pm

Re: Business Relief for Inheritance Tax

Postby bifster2000 » Wed Mar 13, 2019 9:33 pm

If FIL lets out the shops to third parties who let them out then he probably won't get BR (it's an investment). If he runs them himself (including if he employs a manager) then he probably will.
One of the shops is being directly sublet to someone else at the moment? Would that count as an investment?

Thanks for the advice by the way - much appreciated.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Business Relief for Inheritance Tax

Postby AGoodman » Thu Mar 14, 2019 11:51 am

Yes, that would not be a business because he presumably just collects rent. BPR is only available where the individual has an interest in the actual business, not just the property.


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