Question:
I am going to inherit a rental property from my father. I will use it for rental business too but is it possible to inherit the property under my limited company instead of under my personal name? Will business property relief apply, and if so will it be 50%?
Arthur Weller replies:
If your father has not died yet then he can change his will so that a company inherits the property instead of you. If he has already died then within two years of death a deed of variation can be made to make the company inherit instead of you, without any capital gains tax or inheritance tax consequences. Business property relief is not relevant here because it is a rental property that I presume is not used in your father's trading business.
