Family faces £1 million inheritance tax bill over widespread issue with holiday lets

Many bereaved families with furnished holiday lets are unable to claim business property relief and have to pay inheritance tax, lawyers say.

Couple look worried as they look at inheritance tax document in close-up photoshoot.
Executors of the woman's will hoped to claim business property relief (BPR) to avoid an inheritance tax bill
(Image credit: miniseries via Getty Images)

A family is embroiled in a legal battle with HMRC that could see them forced to pay an inheritance tax bill of £1.1 million after mistakenly believing they would owe nothing.

The dispute involves the estate of Ms Gertrud Tanner, who died in 2017. Her estate included a business which provided holiday accommodation, made up of five properties near Whitby in North Yorkshire.

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Laura Miller

Laura Miller is an experienced financial and business journalist. Formerly on staff at the Daily Telegraph, her freelance work now appears in the money pages of all the national newspapers. She endeavours to make money issues easy to understand for everyone, and to do justice to the people who regularly trust her to tell their stories. She lives by the sea in Aberystwyth. You can find her tweeting @thatlaurawrites