In Executors of the Estate of M Ross (deceased) v HMRC [2017] UKFTT 507 (20 June 2017) the FTT found that the management of holiday cottages was an investment activity so that the cottages did not qualify for business property relief (‘BPR’) (IHTA 1984 s 105).
The appellant’s claim for BPR in relation to eight holiday cottages and two staff flats had been rejected by HMRC on the ground that the properties belonged to a business which consisted of investment in land so that they did not fall within the definition of business property.
The FTT observed that the owning of land to earn rental income is an investment activity but that it could include non-investment activities. The issue was whether the non-investment activities were more significant than the investment activities and this was a question of fact and degree.
The FTT accepted that Mrs...
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In Executors of the Estate of M Ross (deceased) v HMRC [2017] UKFTT 507 (20 June 2017) the FTT found that the management of holiday cottages was an investment activity so that the cottages did not qualify for business property relief (‘BPR’) (IHTA 1984 s 105).
The appellant’s claim for BPR in relation to eight holiday cottages and two staff flats had been rejected by HMRC on the ground that the properties belonged to a business which consisted of investment in land so that they did not fall within the definition of business property.
The FTT observed that the owning of land to earn rental income is an investment activity but that it could include non-investment activities. The issue was whether the non-investment activities were more significant than the investment activities and this was a question of fact and degree.
The FTT accepted that Mrs...
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