I am drafting a Will for a couple, one of whom has an interest in a business which I am almost certain will qualify for BPR. They have no children so no RNRB to consider. I am therefore proposing gifts into a nil rate band discretionary trust of the business interest plus a cash sum equal to the maximum that can be paid without iht becoming payable. Residue then to go on life interest for spouse to benefit from the spouse exemption.
However, I wish to ensure that on the death of the first to die, HMRC look at the BPR position and I understand they only do this if tax is at stake. I know I should not make the gift of the business interest into the trust conditional on it qualifying for BPR as this will definitely mean no tax is at stake.
My question is if I word the gift of cash going into the trust along the lines I have set out above, this is also aimed at there being no tax to pay on first death, regardless of the BPR position. Does this also mean HMRC will not consider the BPR position on first death?
Ellen Fay Solicitors