You may own a business that is eligible for an inheritance tax relief known as Business Property Relief, applicable to most types of trading or service businesses.
At TJP Wills, we specialise in will and estate planning, including business property trusts. Located in Norfolk, we are happy to work with clients all over the UK with regards to our business property relief schemes.
Business Property Relief is applicable to most types of trading or service businesses and is a type of discretionary trust. If there is no plan to pass on shares in the business, this can result in unforeseen negative consequences for the remaining business partners.
If you find yourself in this situation, you may see unwanted tax consequences as when this relief is not utilised, you can expect an inheritance tax bill that is much larger than it could be when this scheme is implemented.
It is possible to get Business Relief of either 50% or 100% of your estate’s business assert, which can be passed on either when the owner is still alive or as part of the will. You are able to claim relief on property and buildings, as well as unlisted shares and machinery.
You are able to get 100% Business Relief on a business, interest in a business and shares in an unlisted company. In other circumstances, you could be eligible for 50% Business Relief, for example on certain shares, land, building, machinery used in the business.
For more information and to start your business property trust, please get in touch today.
TJP Wills and Estate Planning can provide expert specialist advice in this area.