Executors of Cox v Commissioners for HMRC [2020] WTLR 1239

Wills & Trusts Law Reports | Winter 2020 #181

This case was an appeal against a notice of determination issued by HMRC under s221 Inheritance Tax Act 1984 (IHTA) which had ruled that the deceased’s furnished holiday lettings business did not qualify for business property relief (BPR). The only dispute was whether the business consisted ‘mainly’ of ‘holding investments’ within the meaning of s105(3) IHTA.

The business began in 1989 with one flat and expanded in 1991 and 1996 with the purchase of further flats in the same building. It continued until the deceased’s death on 27 December 2014.

The tribuna...

Re Boyes [2020] WTLR 793

Wills & Trusts Law Reports | Autumn 2020 #180

The testator (T) died in 2010 aged 86 with an estate of £391,573. The claimant (C) was the elderly sister of T’s late wife and sought to propound his last will dated November 2009, which left the estate as to two thirds to her and one third to the first defendant (D1), T’s daughter, who was also executor along with the second defendant. The third and fourth defendants (D3, D4), T’s two sons, challenged the validity of the 2009 will on grounds of lack of testamentary capacity and/or fraudulent calumny allegedly perpetrated by D1 (who was the beneficiary under C’s will). D3 and D4 therefor...

Charnley v HMRC [2020] WTLR 93

Wills & Trusts Law Reports | Spring 2020 #178

Mr Gill’s estate included the house in which he lived, a brick barn and outbuildings and 21 acres of permanent pasture. During the relevant period Mr Gill did not own any livestock. He allowed farmers to graze their livestock on his agricultural land under annual grazing licences. It was not disputed that the house was of a character appropriate to the farm.

HMRC refused agricultural property relief (‘APR’) in respect of the value of the house, barn and outbuildings on the basis that neither the house nor outbuildings were occupied for the purposes of agriculture, and refused the ...

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...

Graham (Deceased) v HMRC
 [2018] UKFTT 0306 (TC)

Wills & Trusts Law Reports | Autumn 2018 #173

The deceased owned a property, Carnwethers, on the Isles of Scilly, from which she ran self-catering holiday accommodation business, as well as occasional bed-and-breakfast accommodation. There were four self-catering apartments which were well-furnished and provided with numerous additional amenities, and particularly assiduous concierge assistance from the owners. On her death HMRC issued a notice of determination refusing business property relief on any of the value of Carnwethers on the basis that the business consisted mainly of the holding of an investment.

The deceased’s pe...

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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Business Property Relief: Room for interpretation?

Zahra Kanani outlines Green v HMRC [2015] which upholds the principle that BPR does not apply to furnished holiday lets and clarifies ‘investment’ activities. ‘From the tribunal’s analysis, it was clear that the extra services provided were insufficient to demonstrate that the business is other than “mainly” one of holding the Flagstaff property as an …
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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 ...

Best v HMRC

Wills & Trusts Law Reports | April 2014 #138

The appellant was the executor of Alfred Buller. On Mr Buller’s death there was a transfer of value of 25,000 shares in Bullick Developments (1986) Ltd (the company). The company owned and managed the Valley Business Centre (the business centre). HMRC determined pursuant to s221 Inheritance Tax Act 1985 (the IHTA 1985) that the shares in the company were not relevant business property for the purposes of s104 IHTA 1984, having regard to s105(3) IHTA 1984, which prevents inter alia shares in a business whose activities mainly or wholly consist of ...