Inheritance Tax Act 1984 section 105

Relevant business property

Section 105 defines what counts as "relevant business property" for the purposes of business property relief from inheritance tax, and sets out the exclusions that prevent certain types of property or business from qualifying.

• Relevant business property includes a business or interest in a business, unquoted shares or securities, control holdings of quoted shares or securities, and certain land, buildings, machinery or plant used for business purposes.
• Shares listed on a recognised stock exchange are "quoted"; all other shares are "unquoted" — the distinction is important because unquoted holdings attract 100% relief while qualifying quoted control holdings attract 50% relief.
• A business that consists wholly or mainly of dealing in securities, stocks, shares, land or buildings, or of making or holding investments, is excluded — unless it is a UK market maker, discount house, or holding company of qualifying trading subsidiaries.
• Shares in a company that is being wound up or liquidated are excluded unless the business will continue after a reconstruction or amalgamation that either is the purpose of the winding-up or takes place within one year of the transfer.