Peter Vaines ponders the intelligent businessman & pesky postal services
The Upper Tribunal has found in favour of HMRC in the case of Mrs N Pawson Deceased v HMRC FTC/36/2012 regarding a claim for business property relief on assets used for a holiday letting business. The First Tier Tribunal had regarded the activity as a business qualifying for inheritance tax business property relief, but the Upper Tribunal has concluded that the property was an investment and not eligible for the relief.
Such arguments are, of course, always very fact specific. A property was operated as a holiday letting business and various services were provided. The essence of the decision was that the services were consistent with the holding of an investment and were not enough to prevent the business being mainly one of property investment. As the First Tier Tribunal had determined all the relevant facts, it was quite something for the Upper Tribunal to overturn its decision. However, Henderson J decided that the First Tier Tribunal judges were completely wrong. He said the
