Deceased was a sole trader until 2017, and the business was transferred to a limited company in 2017. He died in 2018, so no BPR on the shares. Are there any grounds to claim BPR on the basis that there was an ongoing business for more than 2 years, albeit
in two different structures.
Presumably this falls within the replacement property rules in s 107. He sold his business to the company and received shares in return. Provided both sole trade and shares would qualify for BPR (and the 2 out of 5 years test is satisfied) then I see no problem.
HMRC’s description is at IHTM25311.
The time during which the sole trader carried on his business will count towards the ownership period of the shares [IHTA 1984 s107].