For the purpose of the rule excluding excepted assets (
IHTM25351) from business relief, you
should treat an asset as not being “used wholly or mainly for
the purposes of the business” (IHTA84/S112 (2) (a)) at any
time when it was used wholly or mainly for the personal benefit of
the transferor (or of a person connected with him), IHTA84/S112
(6).
The meaning of "connected with" is set out in IHTA84/S270.
When you investigate this provision in relation to a
particular business asset you should normally check how the asset
has been treated for Income Tax purposes.
