Business Relief (BR) can reduce the value of a business or its assets when calculating inheritance tax:

  • Qualifying assets: Shares in an unlisted or AIM listed company, an interest in a business (such as a partnership), or some types of farmland or woodland can qualify for relief.
  • Relief percentage: 100% relief is available for qualifying businesses, and 50% relief is available for certain other assets, such as property and machinery used by the business.
  • Ownership period: The business or asset must have been owned for at least two of the last 5 years before death to qualify for BR.

Business Relief can be a valuable tool in reducing the inheritance tax liability on business assets, but it is essential to ensure the business qualifies and meets all the criteria.