CG17939 - Taper relief: business asset: personal representatives

TCGA92/SCHA1/PARA5 (4)

TCGA92/SchA1/para 5 explains when an asset (other than shares (or securities, or interests in shares or securities, see CG17930) is a business asset in relation to its disposal by a deceased's personal representatives. The rules which apply are different for holding periods between 6 April 1998 to 5 April 2000, 6 April 2000 to 5 April 2004, and from 6 April 2004.

Rules for periods between 6 April 1998 and 5 April 2000

For holding periods prior to 6 April 2000, an asset which is disposed of by a deceased's personal representatives will be a business asset at any time when the asset was used wholly or partly for the purposes of a trade carried on by:

• the deceased's personal representatives, or
• a company which is a qualifying company by reference to the deceased's personal representatives, see CG17948, or
• a trading company in a trading group where the holding company is a qualifying company by reference to the deceased's personal representatives, see CG17953.

Rules for periods between 6 April 2000 and 5 April 2004

The rules to determine what is a qualifying company changed from 6 April 2000, see CG17948. From 6 April 2000 a company will be a qualifying company by reference to an individual's personal representatives at any time when the company was a trading company or the holding company of a trading group and one or more of the following conditions was met -

• the company was unlisted,
• the personal representatives were able to exercise at least 5% of the voting rights in the company.

Rules for periods from 6 April 2004

An asset which is disposed of by an individual's personal representatives was a business asset at a time when it was being used, wholly or partly, for the purposes of a trade carried on by:

• an individual or a partnership of which an individual was at that time a member, or
• the trustees of a settlement or a partnership whose members at that time included -
• • the trustees of a settlement, or
  • any one or more of the persons who at that time were the trustees of a settlement (so far as acting in their capacity as trustees), or

• the personal representatives of any deceased person or a partnership whose members at that time included -
• • the personal representatives of any deceased person, or
  • any one or more of the persons who at that time were the personal representatives of any deceased person (so far as acting in their capacity as personal representatives), or

• a company which at that time was a qualifying company by reference to the deceased's personal representatives, see CG17948, or a company which at that time was a member of a trading group, the holding company, see CG17953, of which was at that time such a qualifying company, or
• a partnership where a member of the partnership was, at that time, a company which was at that time was a qualifying company by reference to the deceased's personal representative or a member of a trading group the holding company of which was at that time such a qualifying company