IHTM30214 - Transfers on death: businesses and interests in businesses

A business or an interest in a business is qualifying property for instalments - IHTA84/S227 (2)(c).

The basic definitions are similar to those for Business Relief (BR) ( IHTM25131):

• the value is the net assets value (compare IHTA84/S110)
• business includes profession or vocation but does not include a business carried on otherwise than for gain (compare IHTA84/S103 (3)).

Accordingly the instructions on the meaning of business ( IHTM25051) elsewhere in the Manual apply.

Interest relief

Property which qualifies for BR under IHTA84/S105 (1)(a) is also qualifying property for interest free ( IHTM30363) instalments. (If the BR is at 100%, this is academic.)

In addition, interest free instalments are available under IHTA84/S227 (2)(c) and IHTA84/S234 (1)(a) for:

• any excepted assets ( IHTM25351) disallowed for BR under IHTA84/S112
• businesses excluded from BR because

• the ownership condition ( IHTM25301) is not satisfied

or

• they are investment businesses ( IHTM25261)

• agricultural property ( IHTM24030) which is an asset of a qualifying business but is excluded from BR by IHTA84/S114 (1).

These instructions do not apply to holdings of quoted or unquoted shares ( IHTM30215) in limited companies.