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 27 · Inheritance tax
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).
Assuming Arthur's wife died 10 years ago and used none of her Nil Rate Band (NRB) or Residence Nil Rate Band (RNRB), what is the maximum total tax-free amount (NRB + RNRB) available to Arthur's estate? (Assume standard 2023/24 rates: NRB £325,000, RNRB £175,000).
Answer options:
£500,000
£650,000
£850,000
£1,000,000
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