Holiday home owners can now claim Business Property Relief
UK holiday home owners who rent out their properties whilst not in use by their loved ones can now claim Business Property Relief as a result of a new ruling, helping to reduce their final Inheritance Tax bill.
Previously, holiday lets were considered to be similar to other rental properties, which are subject to the usual, 40% tax on death. However, HMRC has now ruled that unlike other owned properties which are rented out, holiday lets are not in fact investments and should not be taxed in the same way.
Although this turnaround has arisen through a case involving a UK property, this is also good news for those who own property overseas and who run their business in a professional manner, as they may also be able to claim Business Property Relief at a later date.
For further information on how you can minimise your Inheritance Tax bill, contact one of our expert estate planners at www.iwc-ltd.co.uk.