Is it true that to qualify for BPR or APR, an asset must only be situated in the UK or EEA?

The assertion that to qualify for Business Property Relief (BPR) or Agricultural Property Relief (APR), an asset must only be situated in the UK or EEA is incorrect. Business Property Relief, specifically, allows for relief on qualifying business assets regardless of their location, meaning that properties can be situated globally and still qualify for the relief.

This highlights the flexibility of BPR in the context of international business operations, as it recognizes the contributions of UK businesses operating assets outside of the UK. Consequently, this relief supports businesses by reducing inheritance tax obligations on qualifying assets, enhancing the viability of their international investments.

In contrast, the other options either restrict the location of assets more narrowly than necessary or misunderstand the eligibility criteria. There are specific conditions for BPR and APR that do not solely hinge on the location of the assets. This makes the understanding of asset location and their qualifications essential for effective tax planning and compliance in the context of inheritance tax.