Glossary · UK
What is Business Property Relief (BPR)?
An Inheritance Tax relief that reduces the taxable value of qualifying business assets by 50% or 100%.
Full Definition
Business Property Relief (BPR) reduces the value of qualifying business assets for Inheritance Tax, either on death or on lifetime transfers. Relief is given at 100% for an interest in an unincorporated trading business, a partnership share, and unquoted trading company shares; and at 50% for quoted shares giving control, and for land, buildings or machinery used in a business the transferor controls or in a partnership. The asset must generally have been owned for at least two years, and the business must be wholly or mainly trading rather than dealing in investments, land or securities. From 6 April 2026 the relief is being reformed: a combined allowance of 1 million will apply to the value of property qualifying for 100% BPR and 100% Agricultural Property Relief, with value above that allowance receiving 50% relief instead of 100%; shares listed on markets such as AIM that are not quoted will receive 50% relief. BPR can make a substantial business pass largely free of the 40% IHT charge, and it underpins certain investment products marketed for estate planning. Careful structuring is needed because excepted assets and investment activities can restrict the relief.