BPR disqualifying events ― liquidation, winding up and contracts for sale

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note considers the disqualifying events that mean that property is not relevant business property for the purposes of BPR. These disqualifications are covered below in detail. Shares in a company which is in the process of a liquidation or winding up will not qualify and where there is a binding contract for sale the business property will not qualify.

Winding up and liquidation

This disqualification applies only to shares and securities in a company. The shares or securities will not be relevant business property where at the time of the transfer:

•
a winding up order has been made in respect of the company
•
the company has passed a resolution for voluntary winding up, or
•
the company is otherwise in the process of liquidation

IHTA 1984, s 105(5)

This rule does not apply if the business of the company is to continue to be carried on after a reconstruction or amalgamation which

•
is either the purpose of the winding-up or liquidation,

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

Trusts and Inheritance Tax

Spouse exemption from inheritance tax

Spouse exemption from inheritance taxArguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’).

14 Jul 2020 13:56 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

Employment Tax

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more

��Ӱ��