In general, relief is available only where relevant business
property (
IHTM25141) disposed of by the donor in
his lifetime is retained as such in the hands of the donee.
However, complicated rules apply where the donee has sold the
original property and used the proceeds to buy other property which
would, on a notional transfer of value by the donee immediately
before the donor's death, qualify for business relief (apart from
the ownership tests).
You should refer to Technical Group any case in which the
parties contend that, although the original property has been
disposed of before the donor's death, the relief is preserved by
the purchase of qualifying replacement property.
