Glossary · UK
What is Business Property Relief (BPR)?
An IHT relief providing up to 100% exemption on qualifying business assets, including shares in unquoted companies and sole trader business assets, subject to a GBP 1 million combined cap with APR from April 2026.
Full Definition
Business Property Relief (BPR) was introduced in 1976 and substantially expanded since. It reduces IHT on qualifying business assets transferred on death or as a Potentially Exempt Transfer that becomes chargeable. 100% BPR applies to: a sole trader business or partnership interest, unquoted shares (including AIM shares -- but from April 2026 only 50% BPR on AIM shares), controlling interest in an unquoted trading company. 50% BPR applies to: quoted shares where the deceased controlled the company, land/buildings/machinery owned by the individual and used in a qualifying company they control. From April 2026, the combined APR/BPR nil-rate band is capped at GBP 1 million per person; assets above GBP 1 million qualifying for either relief receive 50% (not 100%) relief. Qualifying conditions: 2-year minimum ownership period, the asset must be a qualifying business (not mainly investment); excepted assets test (excess cash and investment assets are excluded from BPR). BPR on gifts: if you give away a BPR-qualifying asset and it qualifies for BPR in the recipient's hands at the date of the donor's death, it may escape IHT as a PET.