To preserve business property/ agricultural property relief - if all assets are left to a surviving spouse on the first death, the availability of
business property relief and/or agricultural property relief could be wasted, as the assets will pass exempt to the surviving spouse in any event.
The nature of the business may change and the business may hold large cash reserves, which will not qualify for
Business Property Relief.
However, as a business asset this should be eligible for 100 per cent agricultural property relief or
business property relief.
IF you are making a gift of a business asset to a son or daughter, remember to claim
Business Property Relief from Inheritance Tax.
When considering the value of your estate for these purposes, you need to ignore any Inheritance Tax reliefs, such as Agricultural Property Relief (APR) and
Business Property Relief (BPR), which can be claimed on farm land or business assets.
But, taking advantage of
business property relief, further reliefs applying to farms and woodlands, plus the family trusts will likely mean little if any IHT is ultimately due.
Business property relief can apply to directly-held AIM shares which are not in property, finance, mining or exploration companies.
He said:: "The quickest way of making a significant dent in your inheritance tax liabilities is to invest in assets that qualify for
Business Property Relief (BPR), as this will give you relief from inheritance tax after just two years.
He did not, however, have the space to extol the virtues of investing in assets that qualify for
Business Property Relief (BPR), which is another effective way of reducing inheritance tax liabilities.
Business assets may also qualify for an exemption known as
business property relief.
Single Payment does qualify for
Business Property Relief if the owner is also a working farmer and has held the SP for more than two years.
Retain
business property relief to encourage entrepreneurs to continue investing in and developing businesses, including family-run firms.
