Do Furnished Holiday Lets qualify for business property relief for inheritance tax purposes.
Regards
Joe Reid
Replies (7)
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Maybe
There is no special rule deeming FHL to qualify for BPR. Each case must be looked at on its own merits. Generally the view is there must be something more than a mere letting to qualify. There was a recent tribunal case where the taxpayer won (name escapes me!).
Aren't HMRC appealling
That wasn't actually a statement. It just amused me leaving the question mark off.
Aren't HMRC apealling Pawson, or did I dream it? <-- Definite question.
Appeal
According to this website, HMRC has been refused permission to appeal which I find surprising.
Pawson appeal
The appeal is on the list of forthcoming hearings, listed for 18 December...
http://www.justice.gov.uk/downloads/tribunals/tax-and-chancery-upper-tribunal-/hearings-register.pdf
HMRC are appealing (an oxymoron I think) - in the meantime....
While we wait the Pawson appeal (which I'm taking bets on that HMRC will win) the position remains that, as the first respondent to the OP commented, it depends on the circumstances.
To put a little flesh on those bones I would say that adding other services such as laundry, arranging tours/trips to local places of interest etc either directly or through an agent, a grocery supply service and so on, would all help the BPR cause. This would, of course, need to be the situation for two years before BPR kicked in.
TC
Hidden information
Well done to MJShone for finding the official list. I tried going to the same website earlier without success. Armed with MJShone's link I tried again to navigate to that link from the site's home page but still failed!!