BPR and estates

Business Property Relief for shares can significantly reduce inheritance tax, but careful planning is needed to maximise its benefits. Understanding how to use this relief effectively can ensure tax efficiency for your family’s wealth.

What Is Business Property Relief (BPR) for Shares?

Business Property Relief (BPR) allows qualifying shares to be passed on without inheritance tax being payable. Shares left to a surviving spouse may waste this relief, as such transfers are already exempt under the spouse exemption. To avoid this, BPR should be carefully planned to maximise its potential.

How to Double BPR for Shares

If shares qualifying for 100% BPR pass to a child, the relief can be claimed. If the child later sells those shares back to the surviving spouse, who then dies holding them, the available BPR can effectively be doubled. This approach requires careful execution to ensure compliance and achieve the desired tax-saving outcome.

Why Strategic Planning Matters

Inheritance tax rules can be complex, and missed opportunities often mean families pay more tax than necessary. Effective use of BPR for shares is a strategic way to minimise inheritance tax. With proper planning, you can preserve family wealth and reduce the tax burden for future generations.

How We Can Help

At Lewis Brownlee, we specialise in inheritance tax planning, including maximising Business Property Relief for shares. Our experienced team can guide you through the process, ensuring you make the most of available tax reliefs. Whether you need help structuring share transfers or understanding BPR eligibility, we’re here to help.

Preserve Your Wealth with Expert Advice

By strategically planning your inheritance tax approach and utilising Business Property Relief for shares, you can safeguard your family’s financial future. So, do call us today to book your free introductory meeting. We are always happy to talk you through what we do and how we do it!