IHTM30252 - Qualifying property (PETs): businesses and interests in businesses
The conditions are the same as with transfers on death (IHTM30214).
Following the approach taken in the case of HMRC v Trustees of the Nelson Dance Family Settlement [2009] EWHC 71 (Ch), it is accepted that business relief (and, therefore instalments) will apply if the transferor’s relevant business property is decreased as a result of the transfer of value, for example if there is a transfer of an asset used in a business.
You will still need to be satisfied that the asset(s) transferred were used in the business, IHTA84/S110, and were not ‘excepted assets’ under IHTA84/S112 (IHTM25351). You will also need to consider the additional conditions in IHTA84/Ss113A and B, see IHTM25361.
If you have any doubts, seek advice from Technical.