Business property relief: No holiday

The bar for a holiday lettings business to qualify for BPR is set increasingly high. Katherine Bullock outlines how to best advise clients ‘It does appear that, to be classified successfully as a non-investment business, a holiday letting business will need very significant services indeed to succeed; possibly even expenditure in excess of 65% of …
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Ross v HMRC [2017] UKFTT 507 (TC)

Wills & Trusts Law Reports | Winter 2018 #170

Mrs Ross originally owned a hotel called the Port Gaverne Inn in Cornwall and later acquired eight holiday cottages across the road called the Green Door Cottages. When she was no longer fit enough to run the business, the hotel was sold though its new owner agreed to provide services to guests renting out the cottages. A handyman was employed by the partnership which owned the cottages and other properties. When Mrs Ross died on 7 November 2011, she was entitled to a two-thirds share in the partnership and the total value of all the properties held by it amounted to £1.5m. The appellant...

Business Property Relief: Going for gold

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 …
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Curtis Green v HMRC [2015] UKFTT 0236 (TC)

Wills & Trusts Law Reports | October 2015 # 153

Mrs Green ran a business known as Flagstaff Holidays (the business) which let five units of self-contained holiday accommodation in a property known as Flagstaff House, Burnham Overy Staithe, King’s Lynn, Norfolk (the property). Mrs Green had bought the property for £900,000 in 2003. Between 2009-2012, the property was let for a total of around 650 to 750 nights a year. At all relevant times, Mrs Green lived in Woodbridge, Suffolk. On 2 February 2010, the property was valued by a firm of estate agents at £1.9m on a vacant possession basis.

On 5 April 2010, Mrs Green settled ...

Ramsay v HMRC [2013] UKUT 0226 (TCC)

Wills & Trusts Law Reports | December 2013 #135

The appellant appealed against a decision of the First-tier Tribunal (FTT). The issue before the FTT was whether Mrs Ramsay had transferred to TPQ Developments Ltd (TPQ) a ‘business as a going concern’ in exchange for shares issued by TPQ so as to qualify for roll-over relief under s162 Taxation of Chargeable Gains Act 1992 (TCGA 1992). The FTT found that what Mrs Ramsay had transferred to TPQ was not a business within the meaning of s162 of the TCGA 1992.

Mr and Mrs Ramsay owned a property known as Moat House in Belfast (the property). On 1...

The Trustees of David Zetland Settlement v HMRCC [2013] UKFTT 284

Wills & Trusts Law Reports | July/August 2013 #131

The 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...

Business Property Relief: Scrutiny of services

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 …
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Business Property Relief: Scrutiny of services

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 …
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HMRC v Pawson [2013] UKUT 050 (TCC)

Wills & Trusts Law Reports | April 2013 #128

The Commissioners for Her Majesty’s Revenue and Customs (HMRC) appealed from the decision of the Tax Chamber of the First tier Tribunal (FTT) dated 14 December 2011 ([2012] WTLR 665) to allow an appeal against a notice of determination dated 1 October 2008. The respondents were the personal representatives of Nicolette Vivian Pawson (Mrs Pawson). The notice had determined that Mrs Pawson’s 25% interest in a property known as Fairhaven, Thorpeness, Suffolk (Fairhaven) was subject to inheritance tax on a deemed disposal at the date of her death. Fairhaven was a large bungalow o...