Practical tips for securing BPR as a ‘trading’ business

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note covers some practical tips on what to do to give a business the best chance of passing the ‘wholly or mainly’ test in IHTA 1984, s 105(3) which is the key to securing BPR. It also covers how to report a BPR claim to HMRC, on which forms and in which boxes a claim should be made. It details dealing with the excepted asset of ‘surplus cash’, planning for trustees and the clearance process offered by HMRC where the position is unclear.

See the BPR ― the ‘wholly or mainly’ test guidance note for further details of the applicable test.

Securing BPR ― overview

BPR can be such a valuable relief in the context of IHT planning that advance planning should be carried out to maximise the chances that it will be available when a claim is eventually made.

If you are aware that one day the client will need to claim or want to claim BPR then this should form a regular topic

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