UK Inheritance tax (IHT)
Business Property Relief
Investments in qualifying AIM or PLUS trading companies can attract 100 per cent relief from IHT provided that the investment is held for at least two years before a chargeable transfer for IHT purposes. For this purpose the ‘trading company test’ is one of wholly or mainly (over 50 per cent) rather than the more restrictive definition for taper relief.
Who can benefit from UK IHT Relief?
Estates and beneficiaries of UK domiciled individuals who are likely to be assessed for IHT on a chargeable transfer, which include the following:
- death of the shareholder
- death of the donor, if the shares were gifted within seven years of death
- chargeable lifetime transfer (eg into a discretionary trust).