BPR Relief Rates
| Asset type | BPR rate | Notes |
|---|---|---|
| Sole trader business | 100% | Must be trading, not investment |
| Partnership interest | 100% | Partner’s share in a trading partnership |
| Unlisted company shares | 100% | Includes AIM shares after 2 years |
| Controlling interest in listed company | 50% | Over 50% of voting shares |
| Land/buildings/machinery (used in business) | 50% | Must be used in the qualifying business |
💡 2-year ownership rule: Assets must have been owned for at least 2 years before death. Start planning early — deathbed transfers do not qualify.
What Does Not Qualify
- Investment businesses — companies whose main activity is holding investments or property
- Businesses in the process of being wound up
- Quoted shares (with limited exceptions)
- Non-trading activities within a business
Excepted Assets
Even within a qualifying business, assets not used for business purposes may be excluded from BPR. Excess cash held beyond trading requirements, investment properties within a trading business, and personal use assets may all be treated as “excepted assets” — receiving no relief.
BPR and Your Will
If your estate includes qualifying business assets, your Will should be structured to make the most of BPR. Leaving qualifying assets to a surviving spouse wastes the BPR (spouse exemption already makes it tax-free). Leaving them directly to children uses BPR to shelter the value from IHT.
Structure Your Will Around Business Assets
Our estate planners understand BPR and can structure your Will to maximise relief. From £69.
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