Distinguishing between Agricultural Property Relief and Business Property Relief

Inheritance Tax (IHT) is payable on death on a person’s estate above their nil rate band (currently £325,000) at a rate of 40%.  In addition transfers out of a person’s estate by way of a gift are also taxable at a rate of between 20% – 40%, the rate charged being dependant on the nature and timing of the transfer.

(more…)