Mark McLaughlin highlights a case on the distinction between qualifying and non-qualifying business activities for inheritance tax business property relief purposes.
Business property relief (BPR) offers inheritance tax (IHT) relief of 100% or 50% in respect of ‘relevant business property’. For example, BPR at up to 100% is presently available on an unincorporated business interest, or shares in an unquoted trading company.
All or nothing
An unincorporated business interest, and unquoted company shares, are not eligible for BPR if the business consists wholly or mainly of dealing in securities, stocks or shares, land or buildings or making or holding investments (NB these BPR exclusions are subject to limited exceptions, which are not considered here).
This ‘wholly or mainly’ exclusion from BPR is an ‘all or nothing’ test.
