Inheritance Tax Relief – Details of What Will You Get
Keywords – Inheritance Tax Relief
In light of this, if you own a business or have a share in one, you will want to know the following about what business relief entitles you to:
What will I get?
Put simply; you could either get half or all of the estate’s business assets passed onto you. This could be either as part of a will or while the business owner is still alive.
If the business owner chooses to pass on their business property (or assets) during their lifetime, the estate will still be entitled to business relief on inheritance tax, providing either the property or the assets qualify for it.
To access this kind of relief; the recipient needs to keep the business and/or the assets going until the donor passes away. To successfully achieve this, you can replace the property and other assets with something boasting an equivalent value.
You should also be aware that to qualify, these assets will need to have been owned by the donor for a minimum of two years before being gifted as assets.
If you are either an executor of the will or administrator of the estate and you think you are entitled to business relief, you will have to fill in the following forms:
Interestingly, you can enjoy 100% business relief on either a business, an interest in that business, and shares in an unlisted company. Whereas, you’re only entitled to 50% of business relief if you control over 50% of the voting rights in a listed company. The same is true of land, buildings or machinery owned by the deceased which were used by a business where they were a partner at.
To learn more about inheritance tax and get advice, go through our tax services channel here.