Be aware of Inheritance Tax on business assets

During the challenging time after losing a loved one, the last thing you want to worry about is Inheritance Tax (IHT).

But if you have inherited a business, you need to understand the financial implications. The business will contribute to the value of the overall estate, so IHT may be due.

However, there is a range of IHT reliefs that you need to be aware of, including:

Business Property Relief (BPR)

One of the most significant IHT reliefs for those inheriting a business is Business Property Relief (BPR).

BPR is designed to protect family-owned businesses and small enterprises from the potential impact of IHT.

It can reduce or eliminate the IHT on qualifying business assets, including shares in a qualifying business, land, buildings, and machinery.

BPR can provide either 50 per cent or 100 per cent relief, depending on the specific assets involved. This is applicable while the owner is alive and when the assets are inherited as part of the Will.

Agricultural Property Relief (APR)

If the inherited business involves agriculture or farming, Agricultural Property Relief (APR) may apply.

This relief applies to agricultural land, farm buildings, and farmhouses that meet specific criteria.

With the potential for 50 per cent or 100 per cent relief, APR can offer significant support if you inherit an agriculture business.

As tax experts and licensed providers of probate services, we can help you navigate your IHT obligations and the probate process. Get in touch for support.