Inheritance Tax Act 1984 section 103

Preliminary

Section 103 defines key terms and concepts used throughout the business property relief chapter of the Inheritance Tax Act 1984.

• References to a "transfer of value" include occasions when inheritance tax is chargeable on settlements, with "value transferred" meaning the amount on which tax is chargeable and "transferor" including the trustees of the settlement concerned.
• A company and all its subsidiaries are treated as members of a group, with "holding company" and "subsidiary" taking their meanings from the Companies Act 2006.
• The term "business" includes professions and vocations but excludes businesses not carried on for gain, thereby ruling out so-called hobby businesses from business property relief.
• Business property relief reduces the value transferred on both lifetime and death transfers of business assets, and also applies to chargeable events arising from settled property held by trustees.