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Before BPR is given, the value of the business, shares or securities is taken out of account to the extent that it is attributable to the value of any excepted assets¹. When applying the excepted assets provisions to an unincorporated business or an interest in a business, firstly any assets which are not used in the business are not included in the valuation of the business² (see I7.120). Then the excepted assets provisions can be applied.

An excepted asset is one which:

1. Ìý

   (a)ÌýÌýÌýÌý was not used wholly or mainly for the purposes of the business throughout the two years prior to the transfer or for such shorter period as the asset was owned (the 'past use' test), or

2. Ìý

   (b)ÌýÌýÌýÌý is not required for future use of the business at the time of the transfer³ (the 'future use' test)

Where the transfer is of shares in a company then the use of an asset for the purposes of the business of a group company during the period of