Business Relief

How do you calculate the relief amount?

In Business Relief the taxable value of the relevant business property is reduced by 90%.

You can calculate the taxable value by deducting from the market value of the relevant business property:

  • liabilities
  • costs
  • expenses
  • any consideration.

A consideration is usually the amount of money paid by the person receiving the gift or inheritance, towards the business property.

Excepted assets

Some business property, known as 'excepted assets', are not included in the 90% reduction when calculating the taxable value. These are:

  • assets not being used for the purposes of the business
  • assets purchased more than two years before the gift or inheritance, and not used completely or mainly for the purposes of the business
  • any new business bought by a company within the minimum ownership period.

Next: Minimum ownership period of business property