If you're deducting Business Relief, 3 years' accounts - for a Company?

[Incredulum]

Hello

On Page 15 of IHT 400 it says, 'if you're deducting Business Relief, a copy of the partnership agreement (where appropriate) and the last 3 years' accounts.'

When it is BPR in respect of unquoted shares, does this apply?

Thanks

[Incredulum]

And is it three years prior to death, or to submission of the return? Thanks

[AGoodman]

Yes, the 3 years' accounts requirement always applies.
Given they will be prepared by financial year, I would just send the last three sets of accounts available.

[dominoman]

Why would HMRC need this?

Does it also apply for Aim shares as those qualify for BPR?

[AGoodman]

HMRC need it to help them assess if the shares qualify for BPR - both at the top level and also whether the company is holding any (non-trading) excepted assets to be deducted from the relief (such as investments or large piles of cash unused in the business).

Yes, could also apply for AIM shares. They still have to meet the business property test and not all will do so.

[Incredulum]

Thank you for that, apologies for not having visited earlier to say thank you, I have been busy...