Circumstances in which relief can be withdrawn
The relief on your relevant business property can be fully or partially withdrawn if:
- the business stopped trading within the six years of the gift or inheritance
- the relevant business property is sold, redeemed or acquired by the state within six years of the gift or inheritance. If this property is replaced within one year, the relief will not be withdrawn.
- you dispose of development land which qualified for business relief between six and ten years after the date of the gift or inheritance. The relief granted will be clawed back from the valuation date.
The relief will not be withdrawn if a business stops trading because the sole trader became bankrupt or insolvent.
Next: How do you claim Business Relief?