An EIS invests in the unquoted companies that attract 100 per cent business property relief
If you arrange for ownership to pass on your death, the bequest should be eligible for 100% Business Property Relief
Such business owners should consider estate planning before they sell out, while business property relief
(BPR) from inheritance tax (IHT) is still available.
Talbot &Co is advising the executors in a disputed application for business property relief
and agricultural relief.
The law currently grants four major 100% exemptions from IHT: 1) Spousal transfers - subject to your spouse being domiciled or deemed domiciled in the UK 2) Business Property Relief
3) Agricultural Property Relief 4) Gifts to charities Everything else - subject to a nil rate band of pounds 325,000 - is chargeable at 40%, and your inheritors must pay any tax to HMRC six months from the month of your death.
We provide specialist services for: Pension funds Entrepreneurial clients Personal injury and protection awards Charities Investment managers within 'family office' structures Tax efficient investments using business property relief
and Enterprise Investment Scheme for companies listed on AIM.
If this amounts to a binding contract on a shareholder's death, it can eliminate business property relief
with the resulting inheritance tax being 40% rather than zero.
Provide for your family Since trading companies generally qualify for 100 per cent business property relief
(BPR) from inheritance tax (IHT), the period before a sale may be a great - and could be your last - opportunity to put significant value into a trust without triggering any immediate IHT charges.
She also advises many business clients in the area on succession and business property relief
and is a leading legal expert in the region on agricultural property relief, acting for a number of farmers and landed estates.
The solution they came up with is Business Property Relief
However, another consideration is that if you are a trading company and you hold too much cash in investments, HMRC may limit or decline Business Property Relief
for inheritance tax purposes and Entrepreneur's relief on the sale of a business.
Thanks to business property relief
, the value of shares in many unlisted businesses can be exempt from inheritance tax, saving a 40 per cent tax bill on the passing of the entrepreneur or business owner, as long as certain conditions are met.