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For BPR to be available on a lifetime gift the usual qualifying conditions for BPR must apply at the time of the gift (see I7.104). However, if the transferor dies within seven years of the transfer then the position will be tested again at their death and the two conditions set down in IHTA 1984, s 113A(3) as to ownership and the status of the property must be satisfied at that time. These are that¹:

1. Ìý

   •ÌýÌýÌýÌý on the death of the transferor the original property (or replacement property²) must have been owned by the transferee from the date of the transfer to the death of the transferor (or the death of the transferee if earlier³), and

2. Ìý

   •ÌýÌýÌýÌý immediately before the death of the transferor the original property (or replacement property⁴) must have qualified as relevant business property (though two years of ownership by the transferee is not required)

However, there are two exceptions to the rule that the property must be relevant business property