Establishing Family Business Trusts to receive business assets on death is the most protective and tax efficient means of dealing with such assets. ‘Business Assets’ are those that meet the HMRC criteria for 100% Business Property Relief (BPR) for Inheritance Tax. That is, at the date of death, the value of the business assets would be relieved of being subject to any Inheritance Tax.
However, just because they qualify for BPR, does not mean that they will continue to do so in the future, for example, the assets may be sold or the business may change what it does.
Consequently, our advice is to ensure they are directed by the Will to Business Property Trusts, this makes maximum advantage of the relief, especially if the business were later sold or that the Business Property Relief legislation was changed