TAXATIONInheritance tax - relief for 'relevant business property' - shares in company running residential caravan site not attracting reliefWeston v Inland Revenue Commissioners: ChD (Lawrence Collins J): 17 November 2000The taxpayer's mother, who died in 1993, owned shares in a company which ran a residential caravan park and bought and sold caravans to potential occupiers.

Pitch fees were paid by those using the park and enjoying its facilities which included mains water, drainage and electricity.

Caravans could only be acquired through the company.

A special commissioner found that the number of caravan sales was not large; the company's accounts showed that profits from pitch fees exceeded those from caravan sales and that the park represented a substantial part of the company's capital.

He concluded that the company's shares could not attract relief under ss 104 and 105 of the Inheritance Tax Act 1984 because the business of the company consisted wholly or mainly of making or holding investments and the shares were thus expressly excluded from the relieving provisions.

The taxpayer appealed.Robert Argles (instructed by Vincent French & Browne) for the taxpayer.

Christopher Tidmarsh (instructed by the solicitor, Inland Revenue) for the Crown.Held, dismissing the appeal, that for purposes of relief from inheritance tax, the issue for determination was whether the company's business consisted wholly or mainly of holding investments; that land was in general held as an investment where gains were derived from payments to the owner for use of the property notwithstanding his activities of maintenance and management incidental to such letting; and that the commissioner, having found that caravan sales by the company were ancillary to its receiving pitch fees from occupiers and having taken all relevant matters into account, had been justified in concluding that the relief for 'relevant business property' was not available.