Where the property transferred is subject to a binding contract for sale, it is not relevant business property in relation to the transfer (IHTA 1984, s. 113). There are two exceptions to this, in which the relief is not lost:

(1)where the sale is to a company which is to carry on the business, and is made wholly or mainly in consideration of shares in or securities of the company, i.e. where a trader incorporates his business;

(2)where the sale is of shares in or securities of a company, and is made for the purpose of reconstruction or amalgamation.

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