Business Relief

What is relevant business property?

You can only claim Business Relief where you receive a gift or inheritance of ‘relevant business property’.

A gift or inheritance qualifies as relevant business property when, on the valuation date:

  • It is a business, or interest in a business (in the case of a sole trader or partnership).
  • It is land, buildings, plant or machinery owned by the person making the gift or bequest. These must have been used solely or mainly for the business purposes of the company before the gift or bequest 
  • It is certain quoted shares in, or securities of, a company.
  • It is unquoted shares or securities of a company where the person receiving the gift or inheritance owns over 25% of the voting rights and either:
    • controls the company
    • or
    • owns at least 10% or more of the combined value of all issued shares and securities. In this case, they must have worked full-time for the company for five years ending on the date of the gift or inheritance.

Business Relief is not available on the transfer of individual assets, even if those assets are used in the business.

Next: Businesses which do not qualify for relief