SVM111040 - IHT Business Property Relief: Categories of business property and rates of relief

For relief to be due on assets which SAV has been asked to consider, the property must fall within one of the following categories listed in s.105(1).

Property within s.105(1)(bb)

On or after 6.4.96 s.105(1)(bb) gives relief to:-

바카라 사이트渁ny unquoted shares in a company바카라 사이트�. Relief is at 100%.

Property within s.105(1)(b)

For events on or after 6.4.96 s.105(1)(b) gives relief to:-

바카라 사이트渟ecurities of a company which are unquoted and which (either by themselves or together with other such securities owned by the transferor and any unquoted shares so owned) gave the transferor control of the company immediately before the transfer.바카라 사이트�

바카라 사이트楽ecurities바카라 사이트� may be treated as including any debt which is either charged on property or is evidenced by a document under seal. Debts such as debentures and loan notes, even if described as 바카라 사이트榰nsecured바카라 사이트�, may therefore rank as 바카라 사이트榮ecurities바카라 사이트�. Securities only qualify for BR if they gave the transferor control or contributed to his control of the company immediately before the transfer. Since the condition would involve ownership of the security giving the transferor votes at general meetings, almost invariably securities will not qualify for BR. Any case, in which it is claimed that 바카라 사이트榮ecurities바카라 사이트� gave or contributed to control, should be referred to the Litigation and Technical Advice Team (LTAT). In addition, if it appears that a debt ranking as a 바카라 사이트榮ecurity바카라 사이트� has been deliberately given votes so as to procure control relief, the case should be referred to the LTAT. Any relief, if due, will be at 100%.

Property within s.105(1)(cc)

After 10.3.92 s.105(1)(cc) gives relief to:-

바카라 사이트渟hares in or securities of a company which are listed and which (either by themselves or together with other such shares or securities owned by the transferor) gave the transferor control of the company immediately before the transfer바카라 사이트�. S.105(1)(cc) provides for relief at the lowest rate available at any date, now 50%. This category will be met very rarely.

Property within s.105(1)(d)

S.105(1)(d) applies to 바카라 사이트渁ny land or building, machinery or plant which, immediately before the transfer, was used wholly or mainly for the purposes of a business carried on by a company of which the transferor then had control ..바카라 사이트�

S.105(6) provides that 바카라 사이트渓and, a building, machinery or plant owned by the transferor and used wholly or mainly for the purposes of a business carried on as mentioned in subsection (1)(d) or (e) above is not relevant business property in relation to a transfer of value, unless the business or the transferor바카라 사이트檚 interest in it is, or shares or securities of the company carrying on the business immediately before the transfer are, relevant business property in relation to the transfer.바카라 사이트� Thus the ownership conditions (see this chapter at SVM111060 onwards) and all other criteria for business relief must be satisfied in respect of the shares or securities giving control.

Additional Guidance: SVM150000