Business relief is not due where the business, or the business carried on by the company, consists wholly or mainly ( IHTM25263) of
These types of businesses are not relevant business property (
IHTM25141) and so do not attract
relief, IHTA84/S105 (3).
This restriction applies directly to business interests ( IHTM25152) and shareholdings (IHTM25161). It also restricts the availability of relief on land and buildings, machinery and plant ( IHTM25222) and settled property used in the life tenant’s business ( IHTM25242). This is because of the requirement that the business (or the transferor's interest in it) is, or the shares or securities of the company carrying on the business are, relevant business property, IHTA84/S105 (6).
However the restriction in IHTA84/S105 (3) does not apply to certain types of businesses. Broadly these are market makers and certain types of holding companies ( IHTM25262).
The Board also have power to make regulations amending IHTA84/S105 to provide that subsection (3) does not apply to any property if the business concerned is of such a description as is set out in the regulations. As yet no regulations have been made.