Victory for private property in Balfour inheritance case

Published 19th Aug 2010

Property used for business purposes is exempt from inheritance tax, after a precedent was set in a victory for Lord Balfour’s descendents against HM Revenue & Customs.

An appeal decision yesterday confirmed a principle that land, houses and cottages let to third parties will qualify for business property relief.

The appeal against Revenue & Customs was originally made by Lord Balfour’s executors in May last year. Lawyers claimed that a traditional estate which was used for a variety of business purposes or trading activity could qualify for inheritance tax relief, not simply if it is straightforward commercial property.

They won this case, but Revenue & Customs made its own appeal and yesterday lost its appeal.

Andrew Arnott, partner at Saffery Champness, which acted for Lord Balfour said: “The refusal is comforting news to owners of traditional landed estates carrying on a range of business activities, who can expect to qualify for business property relief on the same basis as the Balfour case.”

Source: ' Guardian '

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