BPR ― the ‘wholly or mainly’ test

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note considers the key test for BPR ― the ‘wholly or mainly’ test, how it is defined and how it is applied. It then considers the considerable body of case law relating to the test and how this has been applied to different types of businesses by the courts. It also considers hybrid businesses and how BPR is applied to them.

Wholly or mainly ― overview

In this note, for ease of reference, ‘trading’ is used to mean a business that does not consist wholly or mainly of making or holding investments and ‘investment’ to mean a business that does consist wholly or mainly of making or holding investments though these are not terms used in the legislation and are generally best avoided in any technical analysis other than as shorthand.

The purpose of the legislation is to give relief to trading businesses. Therefore, BPR is not available on a business which is wholly or mainly dealing in securities, stocks or shares, land or buildings, or making or holding

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

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

Corporation Tax

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

��Ӱ��