Inheritance Tax Act 1984 section 108

Successions

Section 108 deals with how ownership periods are calculated for business property relief purposes when property is inherited on someone's death, particularly from a spouse or civil partner.

• Where a transferor inherits property on the death of another person, they are treated as having owned that property from the date of that person's death.
• Where the deceased person was the transferor's spouse or civil partner, the transferor is also treated as having owned the property for any period during which the spouse or civil partner owned it.
• These deemed ownership rules apply specifically for the purposes of the minimum ownership period test and the replacement property rules under sections 106 and 107.
• The spouse or civil partner rule applies regardless of how long the couple had been married or in a civil partnership.