Business Property Relief
As part of our Estate Tax Planning service, SMH Wills & Probate offer a specialised service in Business Property Relief (BPR). If you are a business owner or investor looking to minimise the inheritance tax liability on your estate, BPR can be an essential tool in your estate tax planning strategy.
What is Business Property Relief?
Business Property Relief is a tax relief that is designed to encourage the ownership and investment in small and medium-sized businesses in the UK. BPR allows you to reduce the value of your business assets, such as shares in a qualifying company or an interest in an unlisted trading company, for inheritance tax purposes.
BPR can be claimed at two rates: 50% and 100%. Assets that qualify for 100% relief include:
- A business or interest in a business
- Shares in an unlisted company
- Land, buildings, or machinery used in the business
- Unquoted shares or securities, including those listed on AIM
Assets that qualify for 50% relief include:
- Land, buildings, or machinery used in a business where the business is let to a trading company or partnership
- An unquoted shareholding in a listed company that has traded on a recognized stock exchange for at least two years
How can Business Property Relief help with Estate Tax Planning?
If you own a business or have invested in a qualifying company, BPR can significantly reduce the value of your assets for inheritance tax purposes. This means that when you pass away, your estate’s value will be lower, and the amount of inheritance tax due will be reduced.
For example, if you own a business valued at £2 million, and you pass away, your estate’s value for inheritance tax purposes would be £2 million. However, if your business qualifies for 100% BPR, the value of your estate would be reduced to £1 million, resulting in a substantial reduction in the amount of inheritance tax due.
Why Choose SMH Wills & Probate for Business Property Relief?
At SMH Wills & Probate we have a team of experienced estate tax planning professionals who specialise in Business Property Relief. Our team will work with you to understand your unique circumstances and help you develop a customised estate tax planning strategy that maximizes your BPR entitlement.
We will guide you through the complexities of BPR and help you identify qualifying assets in your estate, ensuring that you are taking full advantage of the available tax relief.
Contact SMH Wills & Probate
If you are interested in learning more about our Estate Tax Planning & Business Property Relief services, please contact us today to schedule a consultation. Our team is dedicated to helping you minimise your inheritance tax liability and protect your wealth for future generations.
