Is the value of shares in a subsidiary eligible for business property relief?
I am an officer and the controlling shareholder of a company X Ltd. A few years ago the company entered into an agreement with an individual software developer and we have developed a successful piece of software.
The intellectual property (IP) is held in a company Y Ltd. The developer holds 50% of the ordinary share capital of Y Ltd and X Ltd holds the other 50%.~
X Ltd markets and sells the software and pays royalties to Y Ltd which pays a salary to the developer and dividends are paid out periodically. There are no family connections and all agreements are commercial. X Ltd continues its original trade as well.
It has been suggested to me that inheritance tax business property relief on the share capital in X Ltd may be denied because the investment in Y Ltd (not a group company) is only 50% under...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.