Solicitors Qualifying Examination (SQE) Practice Exa\

To qualify for Business Relief under Inheritance Tax (IHT), shares must be owned for a minimum period of two years prior to the individual's death. This is a crucial requirement for ensuring that the beneficial ownership of the shares is established, demonstrating a commitment to holding an interest in the business rather than viewing the investment as a short-term gain.

Ownership for less than this period may not reflect a genuine investment in the business, which is the rationale behind requiring a minimum ownership period. Business Relief aims to promote and support entrepreneurship by allowing individuals to pass on their business interests without incurring significant tax burdens, and the two-year threshold reinforces the notion of substantial investment and support for the business.

In this context, options citing shorter or longer times do not align with the specific requirement established in tax legislation regarding Business Relief.