Chapter: 2 - Inheritance Tax Mitigation: The Basics

Outline description

2.5.1

These reliefs are given in most cases at 100%, and are generous indeed.  It is a major surprise that successive Labour Governments have not since 1997 sought to reverse the rate increases introduced by a Conservative Government in 1992.  The rules for both reliefs (business property relief and agricultural property relief – BPR and APR) are complex, covered in Chapters 6 and 7 respectively.  In each case one must determine the type of property which qualifies and the time it has been owned or (in the case of agricultural property) occupied – generally two years.  Neither relief is given if at the date of transfer the property is subject to a binding contract for sale  (IHTA 1984 ss113 and 124).  Certain types of business or agricultural property attract relief at only 50%.