Mark McLaughlin looks at the inheritance tax business property relief status of furnished holiday accommodation.
Business property relief (BPR) is a valuable inheritance tax (IHT) relief for business owners, which is available where certain conditions are satisfied.
The relief applies to ‘relevant business property’, including a business or interest in a business, and unquoted shares in a company. The BPR rate potentially applicable to those categories is 100% (although from 6 April 2026, the 100% relief currently available without any limit will only apply to the first £1m of assets, with a 50% rate applying above that limit).
Holiday lettings
However, there is an exclusion from BPR (subject to limited exceptions) if the business, or the business carried on by the company, consists wholly or mainly of ‘making or holding
