IHTM25271 - Caravan sites and furnished lettings: General


You should investigate whether the rule excluding investment businesses ( IHTM25261) from business relief applies if the business involves a caravan site, letting of furnished accommodation, a furnished holiday letting or letting commercial premises.

The two tests that need to be applied in these cases are:

  1. whether the activities carried on constitute a business for the purposes of IHTA84/S105 (1)(a); and
  2. if they do, is relief precluded because that business was one of “wholly or mainly holding investments”, IHTA84/S105 (3).