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Home / Simons-Taxes /IHT, trusts and estates /Part I7 Special reliefs /Division I7.1 Business property relief (BPR) /Meaning of relevant business property / I7.110 Meaning of business
Commentary

I7.110 Meaning of business

IHT, trusts and estates

I7.110 Meaning of business

The first step when considering whether BPR can apply is that there has to be a business. For these purposes, a business includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain1. Though IHTA 1984, ss 105(1)(b), (bb) and (cc) do not say that the company concerned must be carrying on a business, this is implicit in the section as a whole2.

There is no territorial limit on the location of the business, other than in respect of market makers and discount houses3.

Otherwise than for gain

A consistently loss-making enterprise was held not to qualify for BPR as it was carried on otherwise than for gain in Grimwood-Taylor v IRC4. The land was principally purchased for occupation by the shareholders

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