I am set to inherit an estate of rented out industrial units. They are currently owned by a sole trader, and my understanding is that there will be a large amount of inheritance tax (IHT) to pay. Can I inherit them via a limited company, and if so, will I be eligible for business property relief (BPR)? 

Arthur Weller replies:  

It is possible to make an instrument of variation (changing the direction of inheritance after someone has died) in favour of a company. Or if you are in a position to do so, obviously you can organise this before the person has actually died. But it will not change the IHT liability. BPR will only be applicable if the deceased used the properties in their business but not where they were rented out.