I Have a Holiday Let
That cottage on the coast probably doesn't qualify for the relief you've been assuming it does.
HMRC's position is that letting furnished accommodation — even with cleaning, welcome packs and a letting agent — is investment, not trade. Business Property Relief is very rarely available.
What typically applies
The abolition of the Furnished Holiday Let regime removed the last statutory support for treating holiday lets as a business. What was already a hostile BPR case law position is now more so.
The practical answer for most families: gifting, life cover in trust, or — where the family genuinely runs the operation like a hotel — a structural review to see whether it can be repositioned as a genuine trade.
Where to go from here
In-depth problem page
Holiday Lets and Inheritance Tax
Full analysis of the FHL abolition and the BPR position.
In-depth problem page
The Cornwall cottage that failed HMRC's trading test
Real story: how one family found out too late.
Regulated adviser
Insure the Inheritance Tax Bill
Whole of Life cover to fund the IHT on the cottage — regulated advice.
Delivered by IMS
Living Trusts
For families who want the property held in a controlled structure.