IHTM25242 - Settled property used in the life tenant's business: Property within IHTA84/S105 (1)(e)

IHTA84/S105 (1)(e) applies to

• any land or building, machinery or plant which
• immediately before the transfer
• was used wholly or mainly for the purposes of a business carried on by the transferor and
• was settled property in which the transferor was then beneficially entitled to an interest in possession.

Under IHTA84/S105 (6) the land, etc, does not qualify for relief under IHTA84/S105 (1)(e) unless the business carried on by the transferor is relevant business property ( IHTM25151) in relation to the transfer.

IHTA84/S105 (1)(e) refers only to the moment of time immediately before the transfer. There is nothing in Chapter I of Part V to require the transferor to have used the land, etc, throughout any earlier period (contrast the minimum period of user ( IHTM25223) requirement in IHTA84/S112 (3) referred to in which applies to IHTA84/S105 (1)(d) but not to IHTA84/S105 (1)(e)). However the normal minimum period of ownership rules apply. This section applies to lifetime transfers only.

You should also check the rules for the definition of business ( IHTM25153) and machinery or plant ( IHTM25227).