Property portfolios and Inheritance Tax (IHT)


Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.


We have been advising a number of clients with substantial large property portfolios of both residential, commercial and mixed portfolios. Properties may be held in direct ownership or through a Company.

Some of these portfolios are standing at significant capital gains.

As these portfolios are not ‘trading’ they do not qualify for either Business Property Relief (BPR) for IHT purposes or CGT Entrepreneurs’ Relief.

Luckily, such portfolios can be dealt with in a number of ways, without triggering unpalatable tax charges upfront, including:

  • Transfer shares in a property company to a business trust. The total value of the properties are immediately outside of the estate for IHT purposes. The trust can be used to support the family’s business and investment objectives going forward;
  • Transfer the properties to a type of family partnership. The value of the properties will fall outside of the estate after seven years with any growth being immediately outside of the estate;
  • Many other ideas – depending on the Client’s circumstances and objectives.

Again, these are general concepts which can be applied and revised to a number of different cases. It is important that all planning is tailored to the individual client.

Also, consider that the Government is consulting on widening the scope of DOTAS as it applies to IHT so Clients should also bear this in mind.

Again, please contact us if you would like to discuss.

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