Business Property Relief Trust
An addition that settles named business holdings on a discretionary trust so that any Business Property Relief on those assets is fully used on death.
For the general law, see Understanding trusts.
What it is
An addition that sits alongside the main gift and settles named business holdings on a discretionary trust, so that any Business Property Relief on those assets is fully used on death. The point is to ringfence relief-qualifying business assets into a trust (rather than letting relief go to waste by leaving them to a spouse outright), with the trustees taking professional advice on the tax position at the date of death.
The clause reflects the restriction from 6 April 2026: 100% relief is expected to apply only to the first £2.5 million of combined business and agricultural property, with the excess at 50%.
Who it suits
- Business owners whose estate includes shares or business interests that qualify for Business Property Relief.
- Any plan aiming to preserve relief and keep business assets working within the family.
Which will it goes in
- Single wills - any number.
- Mirror wills - any number, each set to one spouse or both. The same trust can appear for each spouse.
Add it as an order line ("BPR Addition").
What you'll set on the form
Trustees and beneficiaries
The standard trustee and beneficiary settings apply - see the shared settings. The beneficiaries are the discretionary class of the business fund.
The business assets and relief
| Setting | Choices | Default | What it does |
|---|---|---|---|
| Businesses | one or more businesses | - | Required - at least one. The business holdings settled into the trust. |
| Anticipated relief rate | 100% · 50% · Mixed | Mixed | The Business Property Relief rate you expect to apply. Mixed states both categories in the clause (100% for sole traders, partnership shares and unquoted holdings; 50% for quoted controlling holdings and personally-owned assets used in the business). |
| (Mirror only) Which spouse | Testator A · Testator B · Both | - | Which will(s) this addition applies to. |
Good to know
- Don't give the same business away as an outright gift and also settle it here - the form won't allow the same asset in two places.
- Where the same assets also qualify for Agricultural Property Relief, that relief takes priority on the overlapping value (the clause says so).
- The trust is limited to UK business property; overseas assets are flagged for advice.
The law behind it
- Understanding Trusts - A Plain-English GuideGeneral guidanceWhat a trust is, how it works, and a plain-language tour of every main type of trust used in England & Wales.
Related
- Agricultural Property Relief TrustProductAn addition that settles agricultural property on a discretionary trust so that any Agricultural Property Relief on it is fully used on death.