Hi Alan, Mother dies in May 2013 without a Will. Mother had an equestrian business for many years and after her death, daughter took over the running of the business from September 2013 and returned any profit for Income Tax under her own PPS number (daughter's PPS number). The administration of the Estate of the Mother is only commencing now and the father is getting the business, land etc. and he is then going to gift it to his daughter who has being running the business since 2013. Can the daughter claim Business relief even though she has being running the business since 2013? Thanks
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For business relief to apply, the disponer needs to have owned the business for two years (prior to death) or for five years (prior to gift). See CATCA 2003 s 94
In relation to a gift or an inheritance, property shall not be relevant business property unless it was comprised in the disposition continuously—
(a) in the case of an inheritance, which is taken on the date of death of the disponer, for a period of 2 years immediately prior to the date of the inheritance, or
(b) in any other case, for a period of 5 years immediately prior to the date of the gift or inheritance, and any period immediately before the date of the disposition during which the property was continuously in the beneficial ownership of the disponer, or of the spouse or civil partner of the disponer, is deemed, for the purposes of this Chapter, to be a period or part of a period immediately before the date of the gift or inheritance during which it was continuously comprised in the disposition.
I think it could be argued that the father inherited on the death of the mother and that the daughter is taking a gift from the father. Although she has declared the income from the business, the business is still under his ownership. Needless to say Revenue will likely resist this.
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