Luke Busbridge examines the outcome of The Trustees of the David Zetland Settlement [2013], in which it was argued that a property business was eligible for 100% business property relief ‘Where a property business is being considered, the assumption is that it will not qualify for business property relief – unless the landlord can show …
Continue reading "Business Property Relief: Going for gold"
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James Hardaker and Tom Collins look at lessons to be learned from Best v HMRC [2014] ‘The message coming out of the Best decision is that it is becoming increasing difficulty for property letting or similar businesses to avoid being categorised as wholly or mainly investment companies for the purposes of IHT.’ Business Property Relief …
Continue reading "BPR: When Best not to invest"
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Wills & Trusts Law Reports | July/August 2013 #131The appellant trustees appealed from a notice of determination dated 16 February 2010 whereby HMRC refused inheritance tax business property relief on the basis that immediately before the ten-year anniversary on 22 September 2007, none of the property comprised in the settlement was relevant business property for the purposes of s104 of the Inheritance Tax Act 1984 (IHTA). HMRC contended that the business was excluded under s105(3) IHTA in that it consisted ‘mainly of… making or holding investments’.
The principal asset of the settleme...
The result of the Pawson appeal has done little to clarify the criteria for claiming BPR in the case of furnished holiday lettings, as Matthew Woods and Sophie Carter relate ‘It was understood that HMRC were awaiting the outcome of this decision before issuing determinations on a number of other claims for business property relief …
Continue reading "Business Property Relief: Scrutiny of services"
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The result of the Pawson appeal has done little to clarify the criteria for claiming BPR in the case of furnished holiday lettings, as Matthew Woods and Sophie Carter relate Interpretation of an intelligent businessman versed on all the available law begins to sound like a tribunal judge, rather than the man on the Clapham …
Continue reading "Business Property Relief: Scrutiny of services"
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Elizabeth Wilson examines the lessons of McCall & anor v HMRCC The case of McCall & anor v HMRCC [2011] provides useful guidance on IHT business property relief for ‘hybrid’ landowning businesses such as seasonal grazing ‘lets’ where the landowner remains in legal and factual occupation of the land used in the business, but is …
Continue reading "IHT: BPR and ‘hybrid’ businesses"
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James Radcliffe explains how Pawson has changed tax treatment for furnished holiday lettings ‘Whether or not accommodation is qualifying holiday accommodation under the FHL rules is not a determining factor in assessing the availability of business property relief (BPR) for the purposes of inheritance tax.’ The taxation of furnished holding letting accommodation (FHLs) has evolved …
Continue reading "Tax: Pause for thought?"
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Wills & Trusts Law Reports | December 2011 #115The appellants were the personal representatives of Mrs Eileen McClean (the deceased), who died on 8 January 1999. The appellants claimed that 33 acres of agricultural land in the deceased’s estate, which at the date of the deceased’s death was valued at £5.8m, owing to it having been zoned for development use, was business property for inheritance tax (IHT) purposes. The respondent, HMRC, determined that no part of the value of the agricultural land transferred on death was attributable to the value of any relevant business property.
The land comprised a number of fields in grass...
