Question 1

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'?

Accepted Answer

Identify the type of asset (unquoted shares in a trading company) and the length of ownership (5 years). Match this to the statutory BPR rates.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing the 100% rate for unquoted shares with the 50% rate for quoted shares (where control exists) or assets used in a business.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 3

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