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Second Property Tax Relief Rules

‘The Sunday Times says holiday homeowners have been urged to take advantage of certain tax reliefs designed for business owners, despite a recent ruling suggesting the properties should be classed as an investment.

HMRC successfully argued in a court hearing this year that holiday lets should be grouped with other buy-to-let and rental properties as an investment for IHT purposes and tax should be charged on the owner’s death.

IHT relief can be gained but it has to be shown that it is a business with a view to making a profit with evidence that more extensive customer services are being provided such as car hire, laundry and possibly entertainment.’

Source: The Sunday Times

Myfanwy Neville

Partner, Property and Construction

T +44 (0)20 8922 9376
E myfanwy.neville@bkl.co.uk

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