- 1. The Scope of the Book: Estate Planning Introduced
- 1.2.3 Other Taxes
- 1.5.14 Tackling tax avoidance: the 22 June 2010 Emergency Budget Proposals
- 1.6.1 ‘Spotlights’ and ‘Signposts’
- 2. Inheritance Tax Mitigation: The Basics
- 3. Making Gifts: Outright or Protected?
- 3.2.3 The pre-owned assets regime
- 3.2.4 Settlor-interested trusts: Income Tax and CGT
- 3.6.3 Formation
- 4. Trusts: Tax-Efficient Management
- 4.4.3 Capital Gains Tax
- 4.7.6 Related settlements
- 4.9.3 Power to accumulate or a discretion over income
- 5. The Family Home(s)
- 6. The Family Business
- 6.1.3 Capital Gains Tax angles
- 6.1.4 Other taxes
- 6.2.7 The period of ownership
- 6.3.1 The announcement of 24 January 2007 - and increasing thresholds
- 6.3.2 The detail of the legislation
- 6.6.2 Partnerships
- 9. Investments
- 10. Life Assurance
- 11. Pensions
- 11.1.2 Pensions not to be used for IHT mitigation
- 11.5.1 Overview
- 11.5.5 Death benefits
- 11.5.6 Age 75: ASP or annuity purchase?
- 12. Charitable Giving
- 12.2 Charities: The ‘fit and proper persons’ test in FA 2010
- 12.2.3 Tax advantages for donors summarised
- 12.2.3.1 Gift aid carry back: time limit for claim
- 13. The Family Unit
- 15. Leaving the UK
- 15.3.7 Gifts from UK to non-UK domiciliaries and reservation of benefit
- 15.3.8 Domicile: prospective government review
- 15.5.7 Differing status for different members of the family
- 16. Non-UK Domiciliaries Living in the UK
- 16.1.5 Further review of non-doms promised on 22 June 2010
- 16.3.2 Compliance
- 16.4.4 IHT and double taxation: the pre-capital transfer tax treaties and Switzerland
- 16.6.1 The statutory rule
- 16.6.2.1 Excluded property settlements and the UK private residence
- 17. Offshore Trusts and Companies
- 17.5.2 The capital payments charge in more detail
- 17.7.4 The transfer of assets abroad regime: non-UK resident childrens trusts
- 18. Wills
- 18.4.3 The transferable nil-rate band
- 18.5.5 Different structures: the balance of advantage
- 18.6.1 The issues, subject to the transferable nil-rate band
- 18.6.2 Statement of Practice SP 10/79
- 19. Post-death Planning
- 20. Compliance
2 - Inheritance Tax Mitigation: The Basics
Chapter: 2 - Inheritance Tax Mitigation: The Basics
A comparison
2.5.4
BPR is given only broadly to businesses which, or shares in unquoted companies (including AIM companies) which, trade – and which trade at a profit. By contrast, APR can be obtained by an agricultural landlord, whether at 100% or at 50%: here the qualifying period of ownership is seven years. Nor is the view to a profit required for APR. BPR is given on a worldwide basis, whereas APR is limited to property in the EEA. BPR is applied to market value, while APR is limited to ‘agricultural value’ (see 2.5.3(d)). The big advantage which farmers have over other businessmen is that APR can be given to the farmhouse, though this has been exciting recent adverse scrutiny from both HMRC and the Courts (see 7.2.2).
Woodlands can attract BPR, provided that they are managed in a business-like way (annual accounts, VAT registration etc), even if it is hard to show a profit on an annual basis: see 7.4.3.