Practical tips for securing BPR as a ‘trading’ business

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note covers some practical tips on what to do to give a business the best chance of passing the ‘wholly or mainly’ test in IHTA 1984, s 105(3) which is the key to securing BPR. It also covers how to report a BPR claim to HMRC, on which forms and in which boxes a claim should be made. It details dealing with the excepted asset of ‘surplus cash’, planning for trustees and the clearance process offered by HMRC where the position is unclear.

See the BPR ― the ‘wholly or mainly’ test guidance note for further details of the applicable test.

Securing BPR ― overview

BPR can be such a valuable relief in the context of IHT planning that advance planning should be carried out to maximise the chances that it will be available when a claim is eventually made.

If you are aware that one day the client will need to claim or want to claim BPR then this should form a regular topic

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Inter-spouse transfer

Inter-spouse transferIntroductionWhen a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil

14 Jul 2020 12:01 | Produced by Tolley Read more

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more

��Ӱ��