My client transferred some unquoted shares to his son five years ago. The shares at that time would have qualified for 100% business property relief (BPR). The client however is now seriously ill and is unlikely to survive for much longer. The issue is that although his son still owns the shares, the company is no longer trading. Will this be an issue should my client die within seven years of making the gift?
BPR is available on a transfer of value attributable to ‘relevant business property’ where certain conditions relating to ownership periods and types of business are satisfied.
The definition of ‘relevant business property’ is found at Inheritance Tax Act 1984 (IHTA 1984) section 105 and includes unquoted trading company shares. You have advised that the shares, at the time the gift was made, did qualify so we can assume the relevant conditions for BPR had been met.
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