Another recent case at the First Tier Tribunal (FTT) found that a furnished holiday letting business did not qualify for business property relief. Â This follows on from the Pawson case in 2013.
Mrs Green owned 5 units of self-contained holiday accommodation in a property called Flagstaff House. Â Although Mrs Green provided services such as a welcome pack, linen, towels, furniture, equipment, wifi and cleaning, it was found that these were relatively minor and ancillary to the provision of the accommodation (which included the property management activities of marketing, pricing, booking, dealing with complains and requests, insurance, repairs and maintenance). Â The result being that the non property management services were sufficient to demonstrate that the business was ‘mainly’ one of holding the property as an investment.
Individuals with furnished holiday let properties, who haven’t already done so, should consider what planning opportunities may be available to reduce the potential inheritance tax which may arise on their estates.
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