BPR & APR

Question 1

What is the normal expenditure exemption?

Answer 1

• made out of income
• normal/regular pattern of giving
• standard of living unaffected

Question 2

What is the charity exemption?

Answer 2

• Can be conditional as long as condition is met within 12 months
• Charity must be in UK or EU

Question 3

What is the political party exemption?

Answer 3

• 2 MPs elected
  OR
• 1 MP + 150,000 votes

Question 4

What does BPR apply to?

Answer 4

• Unquoted shares - 100%
• Business or interest in a business - 100%
• Quoted shares giving control - 50%
• Assets used in business - 50%

(Business does not include wholly or mainly investment or dealing in land &/or shares)

Question 5

What is BPR?

Answer 5

• owned assets for 2 years before death
• If inherited as spouse get Spouses period of ownership
• If inherited as anyone other than Spouse, backdated to date of death

Question 6

BPR - what happens if qualifying assets A are sold and new qualifying assets B are bought?

Answer 6

B assets treated as acquired when the A assets were

Question 7

When does BPR apply on lifetime transfers?

Answer 7

After death the PET and LCT is re-assessed. In order for BPR to still apply the asset must:
- owned by transferee
- qualified for BPR on death (either the transferor or transferee)
- no min ownership for transferee