HMRC will continue its inheritance tax business property relief clearance service for business owners and will also extend the scope of the service.

The service was launched for a trial period of six months from April 2008 whereby HMRC undertook to provide an opinion of Inheritance Tax Business Property relief wherever there is uncertainty. HMRC committed to responding to clearance applications within 28 days as the norm.

The extension of the scope of the service includes:

• an opinion from HMRC on the tax consequences of a transfer of value that involves a change of ownership of a business where this transfer, leaving aside the application of business property relief, would result in an immediate inheritance tax charge. Clearances in these change of ownership cases will remain valid for a limited period of six months.
• an applicant who has previously had an application rejected because it fell outside the scope of the trial service, but the circumstances are such that it would be included in the scope of the extended service, may request a review of the original application.

For further details see http://www.hmrc.gov.uk/cap/clearanceiht.htm