IHTM25261 - Investment businesses: Introduction
Business relief is not due where the business, or the business carried on by the company, consists wholly or mainly ( IHTM25263) of
- dealing in securities, stocks and shares;
- dealing in land or buildings, or
- making or holding of investments.
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.
