Understanding Business Relief

Business Relief (BR), formerly known as Business Property Relief (BPR) is a tax relief in the UK that can help to reduce the Inheritance Tax (IHT) liability on a business owner’s estate when they die. BR was introduced to encourage entrepreneurship and to ensure that family businesses and other businesses can continue to operate after the death of the owner.

BR is available at two rates: 100% relief and 50% relief, and the rate of relief that applies depends on the type of property involved.

To qualify for 100% BR, the property must be a business or an interest in a business, and must have been owned by the deceased for at least two years before death. This includes a sole trader business, a partnership business, or shares in an unquoted trading company.