05: Business and farming assets

Interests in businesses and agricultural property may benefit from some extremely valuable reliefs, although they are subject to several conditions. In particular, you generally need to have held the assets for at least two years before they qualify for these special reliefs. The reliefs reduce the taxable value of the transfer by 100% or 50%.

100% IHT relief is given for:

Shares in an unlisted trading company, or a trading company listed on AIM (the Alternative Investment Market) or the over the counter market PLUS.
The business of a sole trader or an interest in a partnership.
Owner-occupied farms and tenanted farms where the lease started after 31 August 1995.

50% IHT relief is given for:

Assets owned by an individual and used by a trading company under their control, or by a partnership in which the individual is a partner.
Tenanted farmland where the lease started before 1 September 1995.

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The FCA does not regulate taxation and trust advice. Tax rules are subject to change.

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