Business Property Relief (BPR) is a crucial element of the UK’s inheritance tax landscape. It allows businesses to be passed on without triggering a large IHT bill, which could otherwise necessitate the sale of the business to cover the tax. This relief is seen as vital for the continuity of family businesses and farms, which might otherwise become unviable if a significant portion had to be sold to pay the tax.

However, BPR has faced criticism for being used as a tax shelter by the wealthy. Some argue that it encourages investments in small businesses and farmland primarily to avoid inheritance tax, rather than for genuine business purposes. Future reforms may aim to tighten the criteria for BPR to ensure it meets its intended policy objectives.

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