A question regarding BPR:
T owns company, X Ltd. X Ltd is the sole shareholder in a property investment company, P Ltd.
On T’s death in 2009 an application for BPR was made and, after negotiation with HMRC they agreed that 60% of the value of X Ltd qualified for BPR, but that 40% (in effect, the value of the shareholding in P Ltd) did not.
T’s Will was varied to pass the BPR qualifying shareholding to a non-exempt beneficiary, with the remainder thereof passing to the Spouse and thus gaining spouse exemption.
My question is this. The shares that passed to Spouse clearly each gave an entitlement, through holding them, to a share of P Ltd. Now that Spouse has died, can/should BPR be claimed on X Ltd in the same manner as previously? For our purposes the value of X Ltd and P Ltd remains the same.
How can shares pass on T’s death to a non-exempt beneficiary using the whole of the BPR, with the Spouse only inheriting the shares that did not qualify. The shares were of the same class, so how could there be a distinction.
Any comments gratefully received - even if those comments amount to seek counsel’s advice!
Rubin Lewis O’Brien