Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Business as usual

07 November 2007 / Brian Friedman
Issue: 4133 / Categories: Comment & Analysis
BRIAN FRIEDMAN MA(Cantab), ACA, FTII of Stoy Hayward summarises a recent Special Commissioner's decision concerning business property relief on let property

(From Taxation 3 May 1990)

Can the letting of a property constitute a business for inheritance tax purposes such that business property relief is due on the value of that property?

The Capital Taxes Office has maintained steadfastly that it cannot but it will now need to soften this approach following a Special Commissioner's decision given on 13 November 1989.

The facts of the case are summarised below together with extracts from the decision.

The background

Mr and Mrs S died within one month of each other in 1987. Mr and Mrs S owned jointly a substantial four storey building in the medical area of London.

The top two floors of the building were used as their private residence and the remaining two floors were let out on medical licences to medical and dental practitioners.

There was also a basement which comprised an x-ray room for use by the...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon