Readers’ forum: Company and shops

I act for a successful company and of the 100 ordinary shares 99 are owned by a father (aged 69) and one by his son who is now the managing director. It is a trading company selling furniture and there is also a daughter who works for it but who is not a shareholder or director. The father also owns two shops and a warehouse that are used exclusively for the company’s business for which it pays him rent.

Assuming that the father dies first the inheritance tax business property relief for the warehouse and shops will be restricted to 50% and I would like to consider a transfer to the children. My questions are as follows.

First would TCGA 1992 s 165 holdover relief apply to the properties on the basis that they are an asset used for the purpose of...