The Executors of K Beresford v HMRC

In The Executors of K Beresford v HMRC [2024] UKFTT 952 (TC) (24 October) the FTT upheld HMRC’s determination that business property relief from inheritance tax was not available in respect of shares in a company. The company’s subsidiary’s activity of letting of parts of a commercial property as serviced offices was ‘wholly or mainly making or holding of investments’.

The deceased B owned shares in a company F Ltd which had a wholly-owned subsidiary N Ltd. N Ltd owned a six floor office building in London. Two floors were let on commercial leases but the other four were operated as serviced offices managed by the company through an agent. There were around 42 separate offices occupied at any given time by between seven and 20 separate firms. Clients entered into a 12-month office agreement...