IHTM25141 - Relevant Business Property: Investigating Relevant Business Property
Business relief is due to the extent that the value transferred
by the transfer of value is attributable to "relevant business
property", IHTA84/S104 (1). When you investigate the detailed
provisions for business relief, you should start by considering if
the property transferred comes within one of the categories of
"relevant business property" in IHTA84/S105 (1).
For deaths and transfers on or after 6 April 1996, there are
seven categories of property which are capable of qualifying as
relevant business property. They are (broadly):
| Category | Rate of relief |
| 100% |
| 100% |
| 100% |
| 50% |
| 50% |
| 50% |
These rates of relief
- apply to deaths and chargeable transfers and events on or after 6 April 1996, except where stated.
- include charges or further charges of IHT arising on a death on or after that date in respect of lifetime transfers ( IHTM14000) of value made before that date. However if the lifetime transfer was of unquoted shares in a company ( IHTM25191) and the transfer was chargeable when made, the higher relief introduced from 6 April 1996 applies only for the purpose of calculating the second tax charge by reference to the transferor's death. The value for cumulation remains as calculated at the time of the transfer by reference to the rate of relief applying at that time.
