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A merry dance

18 March 2014 / James Kessler , Oliver Marre
Issue: 4444 / Categories: Comment & Analysis , Business , Companies

Holding shares in a trading company by way of a partnership is not a bar to business property relief


  • Unquoted shares in trading companies are relevant business property.
  • Limited liability partnerships are treated as other partnerships.
  • HMRC consider that relief is not available where unquoted shares are not held directly.
  • The impact of the case of RCC v Nelson Dance.
  • Over-reliance on the concepts of “transparent” and “obscure” does not help.

It is often the case that shares in a trading company are held through an investment partnership as indicated by Partnership Holdings (below; click image to enlarge).

Typically this is a limited liability partnership (LLP) but the type of partnership does not usually matter because IHTA 1984 s 267A (below; click image to enlarge) directs that an LLP is to be treated...

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