Those with a holiday home should consider letting it out as this means they are exempt from inheritance tax, it has been claimed.
This may come as good news to anyone who has a second house and is currently busy drawing up a holiday let agreement.
According to DHC Accounting, many people do not realise that they will be exempt from the tax due to the home being regarded as a business.
Tony Briscoe, director of DHC Accounting, said: "As long as you've owned it for two years, there are certain things you have to do but by and large, any holiday let property should qualify."
He added that many of the properties are valuable and owned by wealthy people so they would benefit from not having to pay the tax.
Research by the Holiday Cottages Group recently revealed that 55 per cent of second home owners are planning to join the holiday lettings market because of financial worries.
Published on: December 30, 2008