SVM111200 | IHT Business Property Relief: Section 105(4) - Market Makers and Jobbers

Under section 105(4) IHTA 1984, section 105(3) IHTA 1984 does not apply if the business carried on in the United Kingdom is wholly (not “wholly or mainly”) that of a market maker or discount house.

Under section 105(7) IHTA 1984 a market maker is a person who:

a. holds themselves out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks and shares at a price specified by them; and

b. is recognised as doing so by the Council of The Stock Exchange.

This definition was expanded with effect from 23 March 1992 to include market makers on the London Financial Futures and Options Exchange (LIFFE).

Additional Guidance: SVM150000