Knowing Business Property Relief Limits

Now for the catch . . .

Business property relief is a very handy tax-saving weapon but it isn't the be-all and end-all. Unfortunately, some business assets do not enjoy property relief – these are called excepted assets.

Under the following circumstances, no relief is available for the business:

Knowing Business Property Relief LimitsIt hasn't been used for wholly or mainly business purposes for the past two years.

Knowing Business Property Relief LimitsThe asset is not required for future use in the business.

Knowing Business Property Relief LimitsThe land or building is let out.

Knowing Business Property Relief LimitsLarge cash balances are held by the firm.

Knowing Business Property Relief LimitsThe asset is subject to a contract of sale.

Knowing Business Property Relief Limits

Many business partnerships are caught out by the fact that assets that are subject to a contract of sale do not attract business property relief. Business partners often enter into a legal agreement that when one of them dies, their share of the business is sold to the survivor – as a result, no BPR is available.

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