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 28 · 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).
If any Inheritance Tax is due on the unquoted shares in 'Vintage Parts Ltd' (assuming BPR was not available for some reason), how can the executors choose to pay this tax?
Answer options:
It must be paid in full within 6 months of the end of the month of death.
In 10 equal annual instalments.
In 5 equal annual instalments.
It is deferred until the shares are sold.
32 questions · hints · full answers · grading
Expert