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SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes.
QUESTION: Does the sale of the barn qualify for Business Asset Disposal Relief (BADR)?
ACCA · Question 25 · Inheritance tax
SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes.
QUESTION: If Arthur had inherited £50,000 from his brother who died 3 years prior to Arthur's death, what percentage of Quick Succession Relief (QSR) would apply to the tax paid on that inheritance?
SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes.
QUESTION: If Arthur had inherited £50,000 from his brother who died 3 years prior to Arthur's death, what percentage of Quick Succession Relief (QSR) would apply to the tax paid on that inheritance?
Answer options:
100%
80%
60%
40%
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