Land is investment

The deceased owned land comprising a number of fields let for seasonal grazing arrangements.

Her son-in-law looked after the fields e.g. inspecting the fencing removing rubbish and informing the grazier of any problems he noticed in his animals. In all he would spend approximately 100 hours on the work annually.

HMRC refused a claim to business property relief in respect of the land on the basis that the land was not relevant business property.

The Special Commissioner decided that the annual letting and son-in-law’s work did just about constitute a business but that it was one that consisted mainly or wholly of the holding of investments.

Business property relief was therefore not due. The taxpayers appealed.

The Court of Appeal said that it was clear that a landowner who derived income from land would be treated as having a business of holding an investment regardless...