Business Property Relief on Cash in Portfolio

Trusts Discussion
1

I am dealing with an estate which may be subject to IHT. Most of the deceased’s funds have been invested in two AIM portfolio accounts (an ISA and a GIA).

The accounts have been held more than 2 years and should qualify for 100% BPR. However, both accounts contain a cash element. Whilst the amounts are sizeable, they are relatively small in comparison to the value of the investments held.

Am I able to offset BPR against the entire value of the accounts, including the cash balance, or will the BPR only be available up to the value of the investments?

Any guidance would be appreciated.

Martyn Dixon
Harold Bell Infields & Co.

2

I can’t see any way to apply it to the cash too. The rules just don’t provide for it.

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