Business Property Relief (BPR) and Agricultural Property Relief (APR) can be applied to properties / assets and is also available for unwrapped investments, if the property is to be modeled as an investment eligible for relief.
Apply Business Property Relief to an Investment
To apply business property relief to an investment, go to the Investment screen. Select or enter an unwrapped investment. Expand the Taxation panel and select the Item Qualifies for Business Property IHT Relief option.
The IHT relief provided by BPR will apply when this checkbox is selected and the owner's mortality event is at least two years after the last contribution to the account. This option works well when illustrating the benefits of investing in funds that qualify for BPR. Note that the software will assume that any account that has an initial balance (and no contributions) at the start of the plan has already been held at least 2 years and therefore qualifies for relief.
Apply Business Property Relief to a Property/Asset
To apply BPR to a business property, go to the Property/Assets screen. Select or enter a property with Type set to Business Property and tick the Business Property IHT Relief setting.
If the business property is a future purchase, entered with New Purchase ticked, a two year hold on relief will be applied from the year of purchase. If the property is owned at the beginning of the plan (i.e. New Purchase is not selected), Voyant will assume that the property has already been held for the required 2 years.
View the Business Property Relief in the Legacy Overview
The Legacy Overview screens will indicate which properties and investments are eligible for business relief using a double asterisk. The same notation is used for Enterprise Investment Schemes, which receive similar IHT relief. The estate value of the BPR eligible property or investment is flagged with double asterisks** indicating its exclusion from IHT. The excluded value is also factored into the nil rate band.
The Legacy Overview screens will indicate which properties and investments are eligible for business relief using a double asterisk. The same notation is used for Enterprise Investment Schemes, which receive similar IHT relief. The estate value of the BPR eligible property or investment is flagged with double asterisks"**" indicating its exclusion from IHT. The excluded value is also factored into the nil rate band.
