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Eligibility for business property relief when company is owned equally.
My query relates to the eligibility of land and buildings used by a business for inheritance tax business property relief. HMRC’s Inheritance Tax Manual at IHTM25222 indicates that IHTA 1984 s 105(1)(d) applies to a building used wholly for a business carried out by a company that the transferor controlled.
In my case a husband and wife each owns 50% of the shares in a trading company that has operated for more than two years in a building that is owned by them jointly. If one spouse were to die can business property relief be obtained on their 50% of the building if this share has been left to their children?
I am uncertain as to the correct answer because each spouse owns only 50% of the company and therefore does not control it individually.
I should be grateful for readers’ advice. If there are any potential pitfalls that...
