SVM27560 - Share Valuation Manual: Business Property Relief and Agricultural Property Relief

Investment Businesses

S.105(3) refuses relief for a business or interest in a business, or shares or securities of a company, if the business (or the company's business) consists wholly or mainly of one or more of the following:

dealing in securities, stocks or shares

dealing in land or buildings,

or making or holding investments.

But, under s.105(4) this refusal of relief does not apply:

1. to any property if the business concerned is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the UK, or
2. to shares or securities of a company if its business consists wholly or mainly in being a holding company of one or more companies whose business does not fall within s.105(3).