Favourite Nephew Relief

'Favourite Nephew or Niece' Relief allows you to treat your nephew or niece as your 'child' when giving them a gift or inheritance.

Under this relief, your nephew or niece is a child of your:

• brother
• sister
• brother's civil partner
• sister's civil partner

This relief changes the relationship of a nephew or niece of a disponer from a Group Threshold B to Group Threshold A for CAT purposes. The Group Threshold A for the nephew or niece will only apply to business assets or shares in a private trading company. If non-business assets are received in the same gift or inheritance, the Group B threshold will apply to the non-business assets.

Conditions for the relief

To qualify for the relief your nephew or niece must have worked substantially (on a full-time basis) for a period of five years prior to the gift or inheritance in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.

In order for the nephew or niece to be deemed to be working substantially on a fulltime basis in the business he or she must work at least:

• more than 24 hours per week at the place where the business, trade or profession is carried out
  or
• more than 15 hours per week at the place where the business, trade or profession is carried out exclusively by the disponer, any spouse or civil partner of the disponer and the nephew or niece.

In addition to a claim for favourite niece/nephew relief, you could also be entitled to claim CAT agricultural relief or CAT business relief if you are eligible.