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Posted 3 August 2017
by Gráinne Staunton

Is Business Property Relief (“BPR”) from Inheritance Tax available for Holiday Park Businesses?



Whilst the recent case of Ross v HMRC concerned self-catering holiday properties rather than a park business, the decision of the First Tier Tax Tribunal gives park owners a useful summary of what HMRC will take into account when reaching their decision as to the availability of BPR for holiday park businesses and the factors that may help or hinder their chances of success.

In Ross, the Executors argued that the nature and quality of the services provided to holiday makers meant that the business should qualify for BPR as it did not consist mainly of holding the land, from which the business was run, as an investment.

The taxpayers lost because the Tribunal decided that the services provided, although further along the spectrum towards ‘trading’ than in previous cases, were still not sufficient to push the use of the land away from being, mainly, an investment.

Tozers would be pleased to help park owners review their business structures in light of this new decision to assess their current likelihood of securing the relief.

If you have any queries or if you are interested in subscribing to our Parklaw service, contact the Parks Team by telephone: 01392 207020 or email parks@tozers.co.uk.

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About the author

Gráinne Staunton

Partner

Partner and solicitor who specialises in the administration of complex estates, Wills and estate planning for wealth preservation and asset protection