Avery Associates specialists in all matters concerning valuations for probate bring you the latest IHT news……….
It has been revealed that the government is not planning to get rid of inheritance tax relief for family firms, as reported by Campden FB.
The Institute for Family Business, which is a lobby group, recently held a meeting with exchequer secretary David Gauke, and Gauke said that during a recent review of the UK’s tax reliefs, the Office of Tax Simplification confirmed that it did not recommend getting rid of business property relief for inheritance tax.
This comes despite the fact that one of the top universities in the country recently released a report recommending that BPR was removed.
The current regulations under BPR are that when someone inherits a stake in a family business, they are not required to pay succession tax. This is seen as many as essential for growth, and if it were removed it is claimed that it would lead to an increase of liquidations of family businesses.
The director of IFB, Grant Gordon, said that the group is encouraged that BPR is not going anywhere, and that if it were removed it would impact negatively on family business growth.
This comes despite the fact that the London School of Economics recently released a report arguing that the relief should be removed. The argument was that it would lead to increased revenues for the government, as well as encouraging business owners to look again at their business structure.
But the IFB claims that BPR creates a long-term approach focusing on stability. It argued that if a major shareholder were to die, this could cause the end of a profitable business
For information and advice concerning all matters relating to valuations for probate call Jeffrey Avery on 0800 567 7769
