Covid-19 Update: We are continuing to provide our usual services whilst maintaining the safety of clients and colleagues. Read our latest update here.

Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

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

Posted on 03rd August 2017 in Parks

Posted by

Gráinne Staunton

Partner and Solicitor
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.

Company & Industry

Related Insights

Insights

Changes to the Trust Registration Service

Posted on 05th May 2021 in Probate & Wills

Updates will shortly be made to the online Trust Registration Service (TRS) in preparation for opening it to non-taxable trusts for registration later this year. Whereas trustees were only obliged to register in certain circumstances before, the new system will shortly catch the vast majority of trusts with the requirement to go through this exercise.

Posted by

Rachael Morley

Associate and Solicitor
Insights

More estates caught by Inheritance Tax last year

Posted on 05th May 2021 in Later Life Planning

Inheritance tax receipts for the tax year 2020/21 saw an increase of £200 million from 2019/2020, reaching a total of £5.3 billion raised through this tax in this year.

Posted by

Rachael Morley

Associate and Solicitor