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21 October 2010 / Peter Vaines
Issue: 7438 / Categories: Features , Tax , Commercial
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Taxing matters

Peter Vaines measures up on BPR, income splitting & doormats

The case of HMRC v Executors of the Earl of Balfour [2010] UK UT 300 has recently been heard by the Upper Tribunal. This is a most interesting and valuable case as it analyses the meaning of business property for the purposes of inheritance tax. This was a Scottish case involving Scots law but there are important elements relating to inheritance tax which, of course, applies to the whole of the UK.

Lord Balfour had an interest in a farming partnership and was the proprietor of a landed estate comprising of approximately 2,000 acres which consisted of two in-hand farms, three let farms, two sets of business premises and 26 let houses. There were also some parks which were let on a seasonal basis.

Lord Balfour made no distinction between the partnership and the estate. His own view seemed to be that everything was run as a single business. The First Tier Tribunal agreed that the whole of the activities represented a single business

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MOVERS & SHAKERS

Jackson Lees Group—Jannina Barker, Laura Beattie & Catherine McCrindle

Jackson Lees Group—Jannina Barker, Laura Beattie & Catherine McCrindle

Firm promotes senior associate and team leader as wills, trusts and probate team expands

Asserson—Michael Francos-Downs

Asserson—Michael Francos-Downs

Manchester real estate finance practice welcomes legal director

McCarthy Denning—Harvey Knight & Martin Sandler

McCarthy Denning—Harvey Knight & Martin Sandler

Financial services and regulatory offering boosted by partner hires

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