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 Business Property Relief (BPR) for holiday park businesses and the factors that may help or hinder their chances of success.
Is Business Property Relief from Inheritance Tax available for holiday parks?
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.
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For further help or support please contact our specialist Parks team who will be happy to provide bespoke advice and guidance.