There are several types of relief from Inheritance Tax (IHT), one of which is
IHT Business Relief.  This can be a significant tax benefit for those with business interests, potentially offering either 50% or 100% relief from IHT on the value of business assets, if certain criteria are met.
 
100% Business Relief:
 
•  can be claimed for a business, an interest in a business, or on shares in an unlisted company. 

50% Business Relief is available for:

•  Shares with more than 50% of the voting rights in a listed company
•  Land, buildings or machinery owned by the deceased and used in a business they were involved with or controlled by
•  Land, buildings or machinery used in a business and held in a trust benefiting from it. 

This relief only applies if the deceased owned the business or asset for at least two years prior to their death.  However, there are limitations, for example, if the company primarily deals in securities, stocks, shares, land, buildings or investments. In some situations, partial Business Relief might be possible.
 
Given its complexity, it is crucial to assess whether IHT Business Relief applies based on your specific circumstances.  Please contact us to discuss whether you may be able to claim IHT Business Relief.
 
Internet link: GOV.UK