Business property relief on preference shares

Dear All,

Please can someone help with my colleague’s query of as we can’t find any authority.

** Does interest payable on Preference Shares qualify for Business Property Relief? I have established that the shares themselves will qualify but the shares carry an interest rate of 10%. I am unsure if the interest payment
will qualify but I can’t find anything to confirm this.**

Thank you,

Rebecca Broom
Associate Solicitor
Mowbray Woodwards

T: 01225

01225 445064


After the interest is paid it is just cash, not business property, so no.

Andrew Goodman
Osborne Clarke LLP

No, it does not qualify. BPR applies to the shares themselves not any income from them (unless the income is reinvested in the business where it may then qualify for BPR).

Hauke Harrack