13. BPR and SITR Flashcards
Business Property Relief
Investments in businesses that carry on a trade
- shares in unquoted AIM companies
- Interest in an uncorporated business (sole tradership or partnership)
BPR and Estate Planning
Once BPR shares have been owned for 2 years, can be inherited tax free
As investors can hold AIM-listed shares within ISAs, these can qualify from IHT exemption as well as traditional ISA benefits
Social Investment Tax Relief
Encourages individuals to support social enterprises and helps them access new sources of finance
Individuals can deduct 30% of the cost of investment (max £1m in tax year) from IT liability, for the year investment was made or previous
Can also defer CGT liability by investing gains in a qualifying SI
Investment must be held for at least 3 years
SITR Qualifying
Charities, Community companies / societies
Fewer than 250 employees
Gross assets of less than £15m
