Will your business get 100% Business Property Relief (BPR) from Inheritance Tax?

It is possible to get 100% relief against inheritance tax on qualifying business assets, the trouble is, are all of your business assets going to qualify? Here are two issues to be aware of.

Recent technical guidance from HMRC warns that in certain circumstances, what you actually get could be significantly different,?one scenario is where a business retains a high amount of ?unused? cash reserves, the other where a ?holding? partnership or LLP has an interest in a trading subsidiary.

Throughout the recession some companies have maintained an ?emergency fund? to provide cover in troubled times. This money asset is deemed not to be employed in the business and is therefore classed as an ?excepted asset? and excluded from BPR relief.

Similarly when coming across corporate structures where the controlling entity is either a partnership or LLP, care and specialist advice must be sought to be confident of the IHT tax position with regard to the amount of BPR available and whether you need to advise or take any action to recover from the position.

If either point discussed above gives you cause for concern, please get in touch and we will put you in touch with a specialist who can help, contact us here.

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