BPR ― relevant business property

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note considers the meaning of relevant business property for BPR purposes and details the six specific categories of relevant business property in detail and the rates that apply to each. It also considers the meaning of business for BPR purposes.

When BPR is available

BPR is available on a transfer of relevant business property. The rate will be 50% or 100% and will depend on which of six categories the relevant business property falls into. BPR applies to transfers by trustees as well as individuals. It can apply on exit charges and 10-year charges. There is no territorial restriction on BPR generally.

Definition of business

For the purposes of BPR a business includes a profession or vocation and must be carried on for gain.

Therefore ‘business’ for BPR purposes is a much wider concept than ‘trade’. It may be easier for a company than a non-corporate entity to

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