It was generally considered and accepted by HMRC that properties that complied with the legislation relating to furnished holiday lettings would generally qualify for 100% business property relief for inheritance tax purposes.
HMRC have updated their manuals suggesting that this approach may not be correct and therefore the properties do not qualify for relief.
The answer will depend upon the level of services provided in running the property whether by the individual or agents that have been appointed to do the day to day running.No doubt there will be a commissioners case sooner or later as a test case to determine the question.
Page rendered at Tuesday, January 06, 2009 10:02:41 PM (GMT Standard Time, UTC+00:00)
Steve Kerby has an impressive broad spectrum of expertise. He started his career with a small firm, learning the rudimentarys of bookkeeping, and now finds himself on the alumni of Price Waterhouse Coopers, the largest firm of accountants in the world, where he developed his auditing skills. The technical and ever changing minefield of taxation issues is now a large focus for Steve, making him an invaluable member of the Corporate Finance Team.
Disclaimer The opinions expressed herein are my own personal opinions and do not represent Nicholsons view in anyway. The contents of this blog are for general information only. It should not be relied on, and any action which could affect your business should not be taken without appropriate professional advice. Please contact Steve Kerby or your usual contact at Nicholsons for more information.