Business Relief reduces the value of a business or its assets when working out how much Inheritance Tax has to be paid.
Any ownership of a business, or share of a business, is included in the estate for Inheritance Tax purposes.
You can get Business Relief of either 50% or 100% on some of an estate’s business assets, which can be passed on:
- while the owner is still alive
- as part of the will
How to claim relief
As the executor of the will or administrator of the estate, you can claim Business Relief when you’re valuing the estate.
You should fill in both:
- form IHT400 (Inheritance Tax account)
- schedule IHT413 (Business or partnership interests and assets)
You must use the market value of the business or asset when calculating relief at 50%.
You can claim relief on:
- property and buildings
- unlisted shares