Holiday Lets and IHT Relief

The rules for ongoing income tax treatment of furnished holiday lets as trading income, and the CGT reliefs, including entrepreneurs relief, were reviewed in 2012, and most landlords will no doubt have them in mind. Less well publicised, was a case which confirmed that such property can also qualify for Inheritance Tax (IHT) business property relief.

If you have such property or are thinking of converting your personal holiday home, or a barn on your farm, into one which will qualify for the full range of reliefs (IHT relief may not be as easy to achieve as income tax and CGT reliefs) please get in touch with Alison Allen. Your overall estate planning for IHT may well need review.