Parents and child owned the freehold to a building. The ground floor of the premises are subject to a 25 year commercial lease. Parents have both died. HMRC suggested trying to claim BPR but the deceased parents are not partners in any business. The property is let merely as an investment. I understood that BPR would not be available in these circumstances but now I wonder otherwise?
I cannot see how any BPR would be available. Whether a suitable Deed of variation might assist although I doubt this very much, as a DOV can not be used to change the parents’ status to being business partners. Kevin Jenkins info@portfoliocounsellingservices.com
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No, all the relevant categories require the deceased to have an interest in the business that uses the property. Maybe HMRC misheard or assumed.
Andrew Goodman
Osborne Clarke LLP
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Many thanks for your responses.
I’d suggest not.
Business property relief applies to any land, buildings, machinery or plant, which immediately before the transfer was used wholly or mainly for the purposes of a business carried on by either a company the transferor then controlled, or a partnership of which the transferor was then a partner.
Prudential
Richard
PFEP