Paragraph 2 Business property
United Kingdom
Section 104 (business property relief) is amended as follows.
In subsection (1)—
in the words before paragraph (a), after “reduced” insert “by 50%.”, and
omit paragraphs (a) and (b) and the words after paragraph (b).
After that subsection insert—
“(1A)But so much of the value transferred as—
(a)is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),
(b)constitutes a chargeable transfer that is not an occasion on which tax is chargeable under Chapter 3 of Part 3 (charges on certain settlements etc), and
(c)does not exceed the amount of the 100% relief allowance available in relation to that chargeable transfer (see section 124D),
is to be treated (instead) as reduced by 100%.
(1B)And so much of the value transferred as—
(a)is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),
(b)constitutes a chargeable transfer that is an occasion on which tax is chargeable under Chapter 3 of Part 3, and
(c)is to be treated (instead) as reduced by 100%.
(1C)Subsections (1) to (1B) are subject to the following provisions of this Chapter.”