IHTM10692 - Investigating supplementary form: D38 - Business relief

This form is designed to obtain the information you need to establish whether 100% business relief (IHTM25021) is available in straightforward cases, and to establish the value of the business interest if 100% relief is not due. The information they contain may also be used to investigate a claim for business relief at 50%. The equivalent form for IHT400 is form IHT413 (IHTM25012).

Question 1

This states as to which type of business interest is involved.

Question 2

This states if the business interest was owned for the two-year period required by the ownership test (IHTM25301).

If the answer to question 2 is no you should proceed as follows:

  • If the business interest ticked at question 1 is a holding of unquoted shares, Shares and Assets Valuation (SAV) will investigate business relief and your Val 70 should include any information the taxpayer has provided in the box at question 2.
  • For other business interests, you should check the rules for the test (IHTM25301) as the 2-year ownership requirement is relaxed in certain circumstances.

Question 3

Business relief is not normally available for a business interest that is subject to a binding contract for sale (IHTM25291).

Question 4

Identifies the shares and securities on which the taxpayer has claimed business relief. You should complete a Val 70 and include the details provided at question 4a.

If the answer to question 4b is yes, you should include any details provided when you complete the Val 70.

Question 5

Identifies the business or interest in a business. The answers at questions 5b and 5c should provide information to establish whether the business interest is relevant business property (IHTM25141). This will tell you if it is the type of business interest which is capable of qualifying for business relief. If 100% business relief is not due, the information provided is needed in valuing the business interest.

Question 6

Provides information needed to value a business interest on which 50% business relief is claimed, and to investigate the claim for relief.

Question 7

These questions will only be answered if business relief is being deducted against

  • A potentially exempt transfer (IHTM04057) that is chargeable by reason of the death and
  • Claiming business relief on any additional tax that may arise as a result of the death.

These transfers are subject to additional conditions (IHTM25361) for business relief.