ACCA Advanced Taxation (ATX) Practice Exam

Is Business Property Relief (BPR) available on excepted assets?

1. Yes, fully available

2. No, not available

3. Only partially available

4. Available if held for more than 5 years

The correct answer is: No, not available

Business Property Relief (BPR) is a relief from inheritance tax that applies to certain types of business assets. However, excepted assets, which typically include investments in property or assets that do not qualify as trading assets, are specifically excluded from this relief. The rationale for this exclusion is that BPR is designed to support the transfer of genuine businesses without the burden of inheritance tax, thus promoting business continuity and aiding in family-run enterprises. Since excepted assets do not contribute to the operational functioning of a business in the same way that qualifying trading assets do, they do not merit the same tax relief under the BPR rules. Therefore, it is accurate to conclude that Business Property Relief is not available for excepted assets, which underlies the validity of the chosen answer.