Q&A: Will business property relief come under attack in the October budget?

As we approach the first Labour Budget for some 14 years there are concerns that inheritance tax business property relief (BPR) is vulnerable. Which areas could come under attack and how can we prepare for them?

What steps should a tax adviser take now?

It is considered that an attack on BPR would take longer to plan than the time we have before the Budget because there is arguably more ‘low hanging fruit’ for the chancellor to consider. Also BPR supports businesses which provide employment and the all-important growth.

The areas of attack could be the areas that require making a BPR claim more robust once the change is implemented. HMRC could continue to ‘wage war’ against ‘holding investments’ as opposed to making the IHTA 1984 s 105(3) attack made more vigorous and more clear and this where attention should be focused.

What about the ‘bright line’...