In this week’s Q&A, Croner Taxwise’s Stephen Fletcher examines the qualifying criteria for business property relief when gifting a company to a family member on retirement
My client is looking to retire from his unquoted trading company. The company has large cash reserves made up of retained profit from trading for many years. He wants to gift the company to his daughter who would like to carry on the business. We are familiar with the capital gains tax issues but would like to make sure business property relief (BPR) is available to reduce any inheritance tax (IHT) exposure. How can we do this?
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