Ask an expert: Business property relief on sale of chain of pubs

Q:

I have an elderly client who is a shareholder of a company which runs a chain of pubs. The company owns all the buildings and the pubs operate from the lower floors of each. The higher levels are let as residential flats. My client is a widower with three daughters. As a large part of his wealth is tied up in the company he is concerned about the inheritance tax position on his death. I know that business property relief may be available but I am concerned that the value of the flats will not attract relief. The flats represent about 40% of the total value of the assets and generate about 30% of the total turnover/profit. They are managed by letting agents.

A:

You are quite right to identify business property relief (BPR) as a possible source of...