PBTax.co.uk - Tax Advice

Peter Bean Tax Advisor

  • E-mail
  • LinkedIn
  • Phone
  • Home
  • About
  • Services
  • Testimonials
  • Contact
  • Blog

Making the most of holiday lets

September 24, 2012 By Peter



Despite the actions of certain Inspectors of  Taxes, HMRC do not make the tax law of the UK. Rather, a very complex interaction between legislation, case law, concessions and interpretation makes up what can be loosely termed, the rules.

In a startling, but much welcomed diversion from the normal, a recent tax case has brought the concept of “common sense” into the arena. In a case looking at holiday lettings, the First Tier Tribunal was asked to consider whether a claim for Inheritance Tax Business Property Relief could be made in respect of a particular holiday letting property.

Having considered the case in full, the Chairman declared that it was clear that no ‘intelligent businessman would consider such a property as Fairhaven to be correctly characterised as an investment. He would consider it to be a business asset to be exploited as part of the provision of services going well beyond an investment as such” and allowed the claim.

So if you’re wanting to maximise tax reliefs for holiday letting properties, you need to provide as many additional services to your customers as possible.  These could range from a welcome pack of groceries, a homemade cake, fresh linen and towels during the stay, to providing a cleaner, help with hiring bikes, free broadband etc. Such services would all count in the favour of the holiday home owner to make the most of not only Inheritance tax but also the Capital Gains tax reliefs that are available.

Filed Under: Capital Gains, Holiday homes, Inheritance Tax, Property, Tax relief

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search the Blog

Latest on the blog

  • Not tax free, but almost as good
  • A victory on Penalties (This is not a football story)
  • 78% tax relief? Don’t tell Mr Osbourne

Blog Categories

  • Benefit in Kind
  • Budget
  • Capital Allowances
  • Capital Gains
  • Company cars
  • Company News
  • Corporation Tax
  • Dividends
  • Entrepreneur Relief
  • Holiday homes
  • Incorporation
  • Inheritance Tax
  • National Insurance
  • Offshore
  • Personal Allowances
  • Profit extraction
  • Property
  • Residency
  • Tax Liability
  • Tax relief
  • Trusts
  • Uncategorized

Latest from the Blog

Not tax free, but almost as good

A victory on Penalties (This is not a football story)

Company Information

PB Taxation Services Limited
Company No. 07134082

Registered Office: 
8 Bodmin Road, Astley, Manchester, M29 7EZ

Contact Us

  • email: 
  • Telephone: 07843 662 981

Copyright © 2022 · PBtax.co.uk All rights reserved. Privacy Policy · Website Built & Supported By: WebCentric360.com

PB Taxation Services Limited · Company No. 07134082 · Registered Office: 8 Bodmin Road, Astley, Manchester, M29 7EZ