Where a transfer on death includes a business, and settled
property used in the business, the settled property is regarded as
part of the business interest. So it comes within this category of
relevant business property (
IHTM25141). It is immaterial whether
the settled property consisted of the business itself or only an
asset used in the business. The usual case is the death of the life
tenant of land or buildings used in his business. This reflects the
decision in Finch v IRC  3 WLR 212. However, there is some
doubt whether this decision can apply otherwise than on a death
Accordingly you should refer any claim for 100% relief under this head by reference to the "Finch" case in connection with a lifetime transfer of settled property used in a life tenant's personal business to Technical Group to consider in the light of the judgements in "Finch". You should also note that in the light of Finch we regard a deceased with a beneficial interest in possession of settled assets as the owner of those assets; they can not therefore be partnership assets and gain relief under s.105(1)(a). Instead, where they are used in a partnership in which the deceased was a partner, they can only obtain business relief by falling within s.105(1)(d).
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Settled property used in a business may also qualify as relevant business property under the special rules for land and buildings, machinery and plant ( IHTM25221), and settled property used in the life tenant’s business ( IHTM25241).