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Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
What is the rate of Business Property Relief (BPR) available on the unquoted shares in 'Vintage Parts Ltd'?
ACCA · Question 29 · Value added tax (VAT)
Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
Following Arthur's death, his executors sell the 'Heritage Restorations' business as a going concern to an independent buyer. The buyer is already VAT registered and will continue the same type of business.
What is the VAT treatment of the sale of the business assets?
Section B - Case 3: Heritage Restorations
Arthur, the founder of 'Heritage Restorations' (a VAT registered sole trader business restoring classic cars), died on 15 November 2023. His estate included 100% of the unquoted shares in a separate trading company, 'Vintage Parts Ltd', valued at £400,000. He had owned these shares for 5 years. His estate also included a classic car collection valued at £250,000, and his main residence valued at £600,000 (left to his son).
Following Arthur's death, his executors sell the 'Heritage Restorations' business as a going concern to an independent buyer. The buyer is already VAT registered and will continue the same type of business.
What is the VAT treatment of the sale of the business assets?
Answer options:
The sale is standard rated (20%).
The sale is zero-rated (0%).
The sale is exempt from VAT.
The sale is outside the scope of VAT.
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