Last Updated on February 15, 2012 by Mark Lavington
An article on the PROPERTYWIRE website outlines in detail the results of a resent tribunal case relating to the treatment of a holiday let property for inheritance tax purposes.
A landmark tribunal case ruling has resulted in much needed clarification regarding the taxation of holiday lettings and has also criticised the conduct of the UK tax authorities.
The case revolved around whether or not the letting of a holiday cottage consisted wholly or mainly of holding an investment. Property consisting of a business or an interest in a business carried on for gain and consisting of something other than the making or holding of investments (relevant business property) is entitled to relief from inheritance tax.
The property in question was a large bungalow overlooking the sea on the Suffolk coast in England. The property could accommodate up to eleven people and was typically let for les than two weeks at a time. HMRC had determined in 2008 that the property was subject to inheritance tax. The taxpayer appealed to the Tax Chamber of the First-Tier Tribunal, claiming that the property was entitled to relief as a `relevant business property’. To read the full article click here
Holiday let owners looking to protect their business would be wise to choose a holiday home insurance policy that is built around a commercial property insurance wording, tailored to the risks involved with operating commercially let UK holiday homes. Call the Holiday Home Insurance Team at Boshers on 01237 429444 for advice and quotations or visit HolidayHomeInsuranceQuote.co.uk