HMRC lose on appeal in Balfour inheritance tax case

An appeal decision yesterday confirmed that land, houses and cottages let to third parties will qualify for Inheritance tax business property relief.
Lord Balfour’s executors made the original appeal against Revenue & Customs in May last year, their lawyers contending that the relief should be due not simply on straightforward commercial property, but also where an estate was used for a variety of business purposes.The Revenue won this case, but lost the appeal.
This is excellent news to owners of landed estates carrying on a range of business activities, who can now expect to obtain business property relief, and will be useful when considering Inheritance tax planning.