Business relief: Investment businesses: Property letting
You should investigate whether the rule excluding investment businesses (IHTM25261) from business relief applies if the business involves a caravan site, letting of furnished accommodation, a furnished holiday letting, letting commercial premises or other letting activities. There may be a wide range of activities within any of these headings.
The two tests that need to be applied in these cases are:
- whether the activities carried on constitute a business for the purposes of IHTA84/S105 (1)(a);
- if they do, is relief precluded because that business was one of ‘wholly or mainly holding investments’, IHTA84/S105 (3).