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Legal Terms – Business Property Relief
Business property relief refers to a tax relief that is applicable to certain types of business assets.
A full relief, typically at a rate of 100%, is provided to offset the value of eligible property when calculating the amount of inheritance tax owed. The relief is granted to six specific categories of property:
• A desire to own a business; • Shares in a company that is not listed on a stock exchange and is involved in trading activities; • A majority ownership of shares in a company that is listed on a stock exchange and is involved in trading activities; • Securities in a company that is controlled by the person transferring the value and is not listed on a stock exchange; • Real estate, buildings, machinery, or equipment used for the business operations of a company controlled by the person transferring the value or a partnership in which they were a partner; • Assets held in a trust that consist of real estate or buildings used for the business operations of the person transferring the value.
Business property relief refers to a tax relief that is applicable to certain types of business assets.
A full relief, typically at a rate of 100%, is provided to offset the value of eligible property when calculating the amount of inheritance tax owed. The relief is granted to six specific categories of property:
• A desire to own a business; • Shares in a company that is not listed on a stock exchange and is involved in trading activities; • A majority ownership of shares in a company that is listed on a stock exchange and is involved in trading activities; • Securities in a company that is controlled by the person transferring the value and is not listed on a stock exchange; • Real estate, buildings, machinery, or equipment used for the business operations of a company controlled by the person transferring the value or a partnership in which they were a partner; • Assets held in a trust that consist of real estate or buildings used for the business operations of the person transferring the value.
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