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The fundamentals of BPR

BPR is a valuable relief which reduces the value of a transfer of relevant business property on which IHT is charged by either 50% or 100%, depending on the nature of the property. There are conditions as to the type of property which qualifies, the activities that the property is used for, the minimum period of ownership and its status as an ongoing business at the date of the transfer. Each condition should be carefully considered. Where the property has been subject to a lifetime gift and the transferor dies within seven years then there are additional conditions that must be met. The purpose of BPR is to ensure that businesses will not have to be broken up on a death due to the need to pay IHT.

BPR is also available for trustees who are subject to IHT on a 10–year charge or an exit charge.

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