Business relief claim where shares fall within the NRB

Trusts Discussion
1

I am dealing with an estate where there is a gift of shares in a trading company to the deceased’s two children, with residue being left to the surviving spouse. The value of the shares falls within the NRB so no IHT is at stake, but can I nevertheless complete an IHT400 return to claim BPR on the shares to preserve the full NRB to be transferrable to the spouse’s estate on her death?

Thanks

Alison Elwess
Adie Pepperdine Ltd

2

There is no requirement to claim BPR.

3

I always claim APR/BPR if it is available so that the relief is not wasted.

4

The relief in s104(1) is mandatory. It does not have to be claimed. Where the entitlement to it is beyond dispute it reduces the value of the estate chargeable on death under s.4(1). So the deceased’s NRB will not be used to charge it under Sch 1 at nil percent and subject to the value of any other chargeable property will be “unused nil-rate band” for s8A.

Jack Harper