Inheritance Tax on business

Hi! A friend of mine is thinking of buying a pub, and is wondering what the inheritance position is re passing on the pub as an asset in the future - he has one daughter aged 11 - so hopefully it won't be for a long time. Is it the same as for ordinary assets?

Thanks.

There is relief from Capital Acquisitions Tax known as Business Asset Relief which reduces the value of the gift/inheritance by 90%
if certain conditions are fulfilled.

Pub business

Hi! Joe, thanks for that info. Do you know what the reliefs are or how I could find out about them.

It would be foolish to let current CAT reliefs influence the decision to purchase an asset. Hopefully your friend will live for many years during which you can be assured there will be many changes to system and what reliefs and allowances are available today will be probably be gone.

The Commission for Taxation recommended changes to business relief; the top line rate of CAT has increased by 50% since 2008; the tax free thresholds have decreased by about 50% in the same time. Things can change very quickly.

Hi! Samharg, thanks for your reply. He has recently accepted early retirement from a job that meant he did a lot of travelling. His parents cared for his daughter while he was away, now he would like to own a business where he can be around to look after his daughter - though he is aware that the pub business can be particularly tying!