Business property relief and investments

When making a claim for business property relief, it is important to ensure that it is related to business activity and not pure investment. Stephanie Webber, tax writer at Croner-i, examines the tax compliance issues

Business property relief is intended to apply, as its name suggests, to businesses, rather than investments. There is also specific provision to restrict the type of business to which it can apply by excluding ‘investment-type’ businesses. However, there may be circumstances in which the relief can extend to assets held as investments rather than for trading purposes.

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