Inheritance tax: BDP, whether a business of ‘making or holding investments’
In Trustees of David Zetland Settlement v HMRC (TC02690 – 17 May) a trust held a leasehold interest in a commercial property and also owned eleven residential properties. The trustees appealed against a charge to IHT under IHTA 1984 s 64 contending that the properties qualified for business property relief. The First-tier Tribunal dismissed the appeal holding that the trust was carrying on a business which consisted mainly of making or holding investments within IHTA 1984 s 105(3) so that the land was not ‘relevant business property’.
Why it matters: IHTA 1984 s 104 provides for relief from inheritance tax for the transfer of ‘any relevant business property’. IHTA 1984 s 105 defines ‘relevant business property’ and s 105(3) provides that a business does not qualify as...
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Inheritance tax: BDP, whether a business of ‘making or holding investments’
In Trustees of David Zetland Settlement v HMRC (TC02690 – 17 May) a trust held a leasehold interest in a commercial property and also owned eleven residential properties. The trustees appealed against a charge to IHT under IHTA 1984 s 64 contending that the properties qualified for business property relief. The First-tier Tribunal dismissed the appeal holding that the trust was carrying on a business which consisted mainly of making or holding investments within IHTA 1984 s 105(3) so that the land was not ‘relevant business property’.
Why it matters: IHTA 1984 s 104 provides for relief from inheritance tax for the transfer of ‘any relevant business property’. IHTA 1984 s 105 defines ‘relevant business property’ and s 105(3) provides that a business does not qualify as...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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