Section 23 of the Landlord and Tenant Act 1954 (LTA 1954) describes those tenancies to which the renewal provisions apply: 'any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purposes'. It is clear that that the provision of accommodation (whether residential or commercial premises) may be a 'business' within the meaning of the Act. Where the tenant’s business is that of subletting, however, whether of the whole or parts of the premises and whether for business or residential purposes, the tenant cannot be in occupation of the whole or the parts in question for the purposes

Section 27(1) of the Leasehold Reform Act 1967 (LRA 1967) provides that: ‘Where a tenant of a house having a right under this Part of this Act to acquire the freehold is prevented from giving notice of his desire to have the freehold because the person to be served with the notice cannot be found, or his identity cannot be ascertained, then on an application made by the tenant [the court] may, subject to and in accordance with the provisions of this section, make such order as [the court] thinks fit with a view to the house and premises being vested

The reference to a statement of intent to be included in a schedule of dilapidations is probably a reference to the endorsement required by paragraph 3.6 of the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy (the Protocol). The endorsement required is that

For the purposes of this response, we have assumed that, the issue of the option aside, T’s estate would be able to claim the residence nil rate band (RNRB) in respect of the property. General information about the RNRB can be found in Practice Note: IHT—residence nil rate band. In IHTM46033, HMRC set out their views on the meaning of ‘closely inherited’. They specifically state: ‘The actual residence does not have to end up in the hands of the deceased’s direct descendants. An estate could still be eligible

We have assumed that W has an immediate post-death interest in the property. Broadly, it should be possible for the trustees to engage in the transaction, but it depends on all the circumstances, in particular, the terms of the trust. However, the trustees should also consider the following issues: • unless expressly permitted by the terms of the trust, trustees may not profit from their position as trustees. See Practice Notes: Trustees—self-dealing, unauthorised profits and conflicts of interest and Trustees—duties • the trustees cannot contract with themselves: this is known as the ‘two-party rule’. A

This question addresses the situation whereby a life interest trust is created by a will, but which is silent as to the appointment of trustees. The answer below considers the legal position and the mechanism for regularising that position. It is assumed for the purpose of this answer that the home-made will complies with the necessary formalities prescribed by the Wills Act 1837, and that the deceased died on or after 1 January 1997. For guidance

The residence nil rate band (RNRB) is only available where a 'qualifying residential interest' (QRI) is ‘closely inherited’ on the deceased’s death. See Section 8J of the Inheritance Tax Act 1984 (IHTA 1984). ‘Inherited’ is defined as meaning that the property passes from a person who has died and the property formed part of their estate immediately before they died. The disposition of the property

How should the trustees report the amount of the debt for the purposes of IHT ten-year charge? Should they include any index-linked element of the debt? We are not aware of any authority on this specific point. The principal or ten-year charge is levied on the value of relevant property owned by the trustees immediately before the ten-year anniversary (TYA). See Practice Note: Relevant property trusts—the principal (ten-year) charge. Where trustees hold a property subject to a charge which has an index-linked element, it is necessary to ascertain the correct valuation of the

This Q&A refers to a secured debt, so it is assumed that there is a loan agreement which contains a term that the debt is secured on the house, rather than just a sum charged on the house by the executors prior to the transfer of the house to the surviving spouse. The sum charged is therefore referred to as a ‘debt’ below. The general valuation principle for inheritance tax (IHT) is that an asset or property is valued at its market value. See Practice note: IHT—valuation principles and particular types of property. The question is therefore ‘what would a third party pay for the debt if it were to be sold on the

Agricultural property relief (APR) is a relief available against inheritance tax in respect of the agricultural value (ie not including non-agricultural value such as planning permission) of gifts of agricultural property made by an individual during their lifetime or on their death. Agricultural land let before 1 September 1995 qualifies for 50% APR under the Agricultural Holdings Act 1986 (AHA 1986). 100% APR

Section 44(2) of the Inheritance Tax Act 1984 (IHTA 1984) provides that where more than one person is a settlor in relation to a settlement ‘and the circumstances so require’, IHTA 1984, Part III (except IHTA 1984, s 48(4)–(6)) shall have effect in relation to it as if the settled property were comprised in separate settlements. IHTA 1984, s 44(2) therefore applies for the purposes of IHTA 1984, ss 43–93. IHTA 1984, s 201(4) makes similar provision. The addition

Unless the trust created by the Will included a specific legacy to the trustees, the trust could be constituted with any property or cash held by the deceased (but not the subject of another specific legacy) or could be constituted with a charge created by the executors of the estate or, alternatively, with a loan made by the trustees to one or more of the beneficiaries of the trust. Despite the lack of a transfer of real or personal property to the trustees, the trust will hold a trust asset, being a chose in action. During the estate administration period, that will be the right to the proper