IHTM25301 - The ownership test: Introduction

The general rule is that property is not relevant business property ( IHTM25141) and so does not qualify for business relief unless it was owned by the transferor ( IHTM25302) throughout the two years immediately preceding the transfer, IHTA84/S106.

The general rule is relaxed in three types of situation

• where the transferor became entitled to the property on the death of another person ( IHTM25321)
• where the property transferred replaced other relievable property ( IHTM25311), and
• where the property transferred had been acquired on an earlier transfer ( IHTM25331) within the two year period.

There are additional ownership requirements for lifetime transfers ( IHTM25361) and gifts with reservation ( IHTM25381).

If there was a change in the nature of the business during the two-year period – see ( IHTM25303).