IHT400 Notes : Guide to completing your Inheritance Tax account

Rate of relief table
IHT400 Notes
Guide to completing your Inheritance Tax account
Type of interest in Date of death on or Date of death Date of death
the business after 6 April 1996 between between
10 March 1992 17 March 1987
and 5 April 1996 and 9 March 1992
inclusive inclusive
Business or interest in a business
Control holdings of shares in
100% 100% 50%
in an 'unlisted' company
Substantial holdings of shares
100% 100% 50%
in an 'unlisted' company
Other shares in an
100% 100% 50%
'unlisted' company
Control holding of shares in a
100% 50% 30%
'listed' company
Land, buildings or plant and
50% 50% 50%
machinery used in a business
Land, buildings or plant and
50% 50% 30%
machinery held in a trust 50% 50% 30%
Definitions
Listed company
A company that is listed on a recognised stock exchange. This includes
shares traded on the American NASDAQ and European EASDAQ for deaths
after 9 March 1992.
Unlisted company
A company that is not listed on a recognised stock exchange. Some
companies, although they are listed in the Stock Exchange Daily Official
List, are still regarded as 'unlisted' when considering Business Relief.
These include:
• shares listed on the Alternative Investment Market (AIM)
• shares listed on the Unlisted Securities Market (USM).
For shares listed on the USM, there are rules that apply to deaths
before 10 March 1992. Please phone our helpline if the deceased
owned shares listed on the USM and the date of death, or date of gift, is
before 10 March 1992.
Control holding
A holding of stocks and shares that gives a person control of a company.
For Inheritance Tax a person controls a company if they can control the
majority (more than 50%) of the voting powers on all questions affecting
the company as a whole.
Substantial holding
A holding of stocks and shares that gives the owner more than 25% of the
voting powers on all questions affecting the company as a whole.
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