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Will my business assets be subject to Inheritance Tax?

Article

Will my business assets be subject to Inheritance Tax?

February 12, 2021

1 minute read

Assets in a private company are subject to Inheritance Tax but Business Relief can reduce this

Assets in a private company are subject to Inheritance Tax (IHT) but Business Relief (BR) can reduce this by 50-100%.

To qualify for BR, the business to which the property relates must be a trading business. You cannot claim BR if the company wholly or mainly (ie more than 50%) deals with securities, stocks or shares, land or buildings, or in making or holding investments.  In this context, the letting of property or land without significant additional services is considered to be an ‘investment activity’.

If BR applies then: property and buildings, unlisted shares and machinery can be transferred on death or during lifetime.

See out other Big Questions here.

Author:

David Rickwood

Partner

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Author:

David Rickwood

Partner

Need expert advice?

Speak to an expert for advice on
+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you

Email
info@shawgibbs.com

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