A merry dance
14 February 2009 in Case law, Inheritance tax, Trusts The High Court has decided in favour of the taxpayer in Trustees of Nelson Dance Family v HMRC [2009] EWHC 71 (Ch).
The deceased had run a farming business, and had settled land previously used in that business on the trustees. The land itself was just that, and did not represent a business or an interest in a business The issue in dispute was whether business property relief under section 104 IHTA 1984 was available.
It was held that the availability of BPR is to be determined by reference to the property and its characterisation in the hands of the transferor, and not the nature of the asset in isolation.
It is not yet known whether the decision will be appealed. In the alternative, it might prove that the government will, instead, amend the law in the forthcoming budget. If so, the window for taking advantage of the planning opportunities might prove to be short lived.
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