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Where Taxpayers and Advisers Meet

business property relief

simonm3
Posts:1
Joined:Mon Nov 06, 2023 4:59 pm
business property relief

Postby simonm3 » Mon Nov 06, 2023 5:14 pm

I understand property investments are generally not entitled to BPR but that businesses such as hotels are allowed depending on level of additional services. Is there a more precise definition? For example what would happen in each of these cases:

1. Apartment in a 5 star resort that is rented out 8+ months a year. Resort provides a wide range of services such as room service, childcare, gym, tennis courts, golf course, restaurants, pools, daily cleaning, 24 hour security. All management is carried out by the resort. Rental income is pooled and shared between owners whose apartments were available on that day.

2. A 1 star hostel that rents out beds in dormitories by the night. Limited additional services except cleaning and changing sheets.

3. Shares in an AIM business such as Safestay that runs hostels.

AGoodman
Posts:1723
Joined:Fri May 16, 2014 3:47 pm

Re: business property relief

Postby AGoodman » Thu Nov 09, 2023 11:10 am

This isn't amenable to a simple answer - not least because much of it has been shaped by various cases.

You can start at: https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm25277

If you are actually planning to invest in any of these things then you should get proper advice.


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