farmerm
Member
- Location
- Shropshire
My wife would like to set up a holiday accommodation business.. what complicates it is neither my wife or I own the land. I farm in partnership with my aging parents but the ownership of the farm is outside the partnership and lies in the hands of my parents. Having been caught out before I am concerned that if we are not careful in applying for a change of land use from agriculture to perm structure or alternatively by putting structures within the residential curtilage of the farm house, we might create some future higher IHT liability that would take the shine off the new business. I know my wife would much prefer to operate the business independently from the farm partnership but my thought would be if may be more IHT efficient if the new business was run within the farm partnership. Inside the partnership any APR lost would be offset by BPR, outside the partnership and I think HMRC would view my parents ownership of the accommodation site as investment property rather than trade with no IHT relief. Flip side is inside the partnership she would then have to charge VAT but we could also recover VAT on the costs... Thoughts welcome....