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BPR disqualifying events ― liquidation, winding up and contracts for sale

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

BPR disqualifying events ― liquidation, winding up and contracts for sale

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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This guidance note considers the disqualifying events that mean that property is not relevant business property for the purposes of BPR. These disqualifications are covered below in detail. Shares in a company which is in the process of a liquidation or winding up will not qualify and where there is a binding contract for sale the business property will not qualify.

Winding up and liquidation

This disqualification applies only to shares and securities in a company. The shares or securities will not be relevant business property where at the time of the transfer:

  1. a winding up order has been made in respect of the company

  2. the company has passed a resolution for voluntary winding up, or

  3. the company is otherwise in the process of liquidation

IHTA 1984, s 105(5)

This rule does not apply if the business of the company is to continue to be carried on after a reconstruction or amalgamation which

  1. is either the purpose of the winding-up or liquidation,

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  • 23 May 2024 09:44

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