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A query was raised regarding whether a niece could apply the 95% Inheritance Tax reduction upon receiving an asset that was used in the deceased's business activity. The Directorate-General for Taxes (DGT) ruled that this reduction only applies when receiving the value of an individual enterprise, a professional business, or shares in entities.
This ruling limits the scope of the family business tax relief, clarifying that individual assets used for business purposes do not qualify for the same reduction as the business entity itself.
The tax team reviews your specific situation.
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