ExpertACCA · Question 22 · Inheritance tax
Section B: Case 2 - Arthur Pendelton's Estate
Scenario: Arthur Pendelton died on 15 February 2024. He owned a working farm, 'Oakwood Farm', which he had actively farmed himself for the last 15 years. The farm consists of agricultural land, a farmhouse where Arthur lived, and two farm cottages occupied rent-free by his farm workers.
Question: Arthur also owned 15% of the unquoted ordinary share capital in 'AgriSupplies Ltd', a trading company that supplies farming equipment. He had owned these shares for 4 years. Do these shares qualify for Business Property Relief (BPR), and if so, at what rate?
Section B: Case 2 - Arthur Pendelton's Estate
Scenario: Arthur Pendelton died on 15 February 2024. He owned a working farm, 'Oakwood Farm', which he had actively farmed himself for the last 15 years. The farm consists of agricultural land, a farmhouse where Arthur lived, and two farm cottages occupied rent-free by his farm workers.
Question: Arthur also owned 15% of the unquoted ordinary share capital in 'AgriSupplies Ltd', a trading company that supplies farming equipment. He had owned these shares for 4 years. Do these shares qualify for Business Property Relief (BPR), and if so, at what rate?
Answer options:
No, because he owned less than 50% of the shares.
Yes, at 50%
Yes, at 100%
No, because they are not agricultural property.
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