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IHT

In the situation where an elderly lady takes herself off to an old peoples home and she lets out her house hwere she has always lived as a serviced furnished holiday let with to help pay the fees. Providing this business qualifies as a holiday let for tax purposes is BPR available on her death providing it remains as a holiday let up to her death? Is there a minimum period for the business status to qualify for BPR and does the fact that it has always been her private residence up until the change of use affect her BPR entitlement?

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Nobody know the answer to this.

A taxpayer recently won a case at FTT (not binding) which allowed BPR on an FHL.

This decision surprised many and was very much dependent on its own facts.  To answer your question, generally in my opinion FHL's will still struggle to qualify for BPR (albeit the recent case it did) , especially in the circmstances where the owner is forced into the position and there is little activity on her part on managing the "business".

Did HMRC ever appeal the Pawson case? anyone?

 

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