Land may be included as an asset of the business (in which case
IHTA84/S105 (1)(a) can apply) or be owned separately from the
business that occupies it (where IHTA84/S105 (1)(d) is in point).
Where the land is treated as part of the business interest
then clearly if IHTA84/S105 (3) applies no part of the business
interest will attract relief.
Where the land and business interest are shown separately
then if IHTA84/S105 (3) applies neither the land nor the business
interest attract relief.
In some cases you may need to examine closely how the land
has been treated but do this only where evidence indicates that a
different treatment of the land to that proposed by the parties is
needed.
Additionally, if you are satisfied that no business existed,
then the purported business interest will not be afforded the
instalment option though land held separately may qualify for
instalments.
If it is accepted that a business existed but IHTA84/S105 (3)
applies, instalments will nonetheless be available and with the
benefit of interest relief. (Although companies to which
IHTA84/S105 (3) applies do not qualify for interest relief.)
Whilst the principles involved in invoking IHTA84/S105 (3) in
respect of these businesses are broadly the same, the types of
lettings have their own individual peculiarities and each will be
discussed separately.
The interpretation and application of IHTA84/S105 (3) has now
been tested before the Special Commissioners in the estates of
Violet Moore (
IHTM25275) (commercial premises),
Bertha Burkinyoung (
IHTM25276) (furnished lettings) and
also Weston v IRC (2000) STC 1064 and Stedman v IRC [2002] WTLR
1357 (caravan parks).
