‘This is potentially very good news for landlords of furnished holiday accommodation,’ said James.

‘Until 2008 HMRC accepted that owners of furnished holiday accommodation could claim business property relief for inheritance tax purposes, which meant that the value of such properties would not be included in their taxable estate when they died.  It also meant that it was easier to make lifetime gifts of holiday lets.

‘In November 2008, however, HMRC quietly altered one paragraph in their Inheritance Tax Manual to say that unless significant extra services were provided with furnished holiday lettings they no longer took the view that these were ‘business property’ for inheritance tax purposes, because they fell within the exclusion for ‘making or holding investments’.  In other words, HMRC took the view that there was no difference between a landlord of furnished holiday accommodation and an investor with a managed portfolio of office blocks and warehouses.

In December 2011, the First Tier Tax Tribunal decided a case involving the late Mrs Pawson, a lady who had died in 2006 owning a 25% share in a holiday cottage.  The services provided to the holidaymakers were only the basic ones such as cleaning and laundry, and Mrs Pawson was not personally involved in the provision of these as they were contracted out.

HMRC said that business property relief was not due as Mrs Pawson’s interest in the cottage had been more of an ‘investment’ than a ‘business’.

It is not an exaggeration to say the Tribunal poured scorn on HMRC’s contentions, pointing out that a businessman looking for a passive investment would not even consider furnished holiday accommodation because of the additional work involved in organising the necessary services and finding new tenants every week or fortnight.

They therefore allowed business property relief on the cottage.

Finally, James sounded a note of caution:

‘A decision of the First Tier Tribunal is not a precedent that HMRC have to follow, and it remains possible at this stage that they will appeal against the decision, but (along with another recent case which suggested that capital gains tax may also be less of a problem for furnished holiday lettings than has been thought) this does represent a significant piece of good news for an industry which is vitally important in our region.  I hope that HMRC, still smarting no doubt from the dressing down they were given by the Tribunal both for the arguments they raised and the way they presented their case, will decide to accept that holiday lettings are a genuine ‘business’ and to stop seeking to charge inheritance tax on them.’

If you are concerned about how this decision may affect you, please contact James Bailey on 01872 276116.

She has fifteen years worth of commercial experience and her indepth knowledge of the popular accountancy software will strengthen the firm’s busy Sage team.

Robinson Reed Layton provides Sage accounts software and contact management systems, together with related training and support, to businesses and charities of all sizes.  The firm also runs regular user seminars based on requests from clients.

Senior Partner Paul Reed is already impressed with the new appointment.

“Wendy is a real asset to our clients.  She is a Sage expert who can really help them get the best accountancy technology to suit their needs and then talk them through actually using it.  Her excellent communication skills and thorough knowledge are a winning combination.”

Wendy is pleased with her new role.

“Robinson Reed Layton has a strong reputation for professionalism and I am very proud to join the county’s only Sage Accredited Accountant Partner.

Having had an excellent relationship with the firm in the past as a client, I can use this as an advantage to better relate with current clients.

The firm’s independent Sage team helps clients to get the best of Sage, from an introduction for a new user to the delivery of advanced tailor made packages to suit clients’ individual needs.

I’m particularly looking forward to being part of the Sage seminars that the firm delivers as our clients really appreciate the extra support and software updates.”

Wendy has used Sage in a variety of sectors including retail, commercial and manufacturing.  She started using the accountancy software 15 years ago in a retail environment before becoming the Finance Manager and running the accounts department of a local export company.

Born and bred in Cornwall, Wendy has lived in Falmouth for the last four years.

James Bailey, Tax Partner for Robinson Reed Layton explains:

“We appreciate that Cornwall Hospice Care will benefit more if we give a donation than if we bought cards.  This way the money can be used directly by the charity, rather than just a percentage of the cards’ proceeds.  We used to send a huge number of cards to our clients and in these days of increased environmental awareness we think it important to act responsibly in reference to our natural resources.”

This festive charitable action further increases the amount given to the local community by the accountancy firm over the past year.  Most recently the staff got into the spirit of the Odd Sock Day for St Petroc’s Society by wearing strikingly mismatching footwear for a day.  Earlier in the year funds were raised for the Cornwall Blind Association through a sponsored walk and for a range of Cornish charities by taking part in the Truro Rotary Club Great Pancake Race.

Cornwall Hospice Care is an independent Cornish charity, uniquely placed within the community and committed to the delivery of excellence in Specialist Palliative Care across Cornwall.

Lynn Taylor from Newquay has worked at Robinson Reed Layton for just over twenty years while Carole Thomas from Hayle has worked with the firm for over twenty one years.

Lynn is an Assurance Manager who looks after quality control together with audits and a portfolio of clients that includes groups, companies, sole traders and partnerships.

Lynn’s start in accountancy was not a predictable move.  She left Bath University with a degree in Applied Biology, signed up to Chartered Accountancy training and has been with Robinson Reed Layton ever since.

She really appreciates the firm’s emphasis on career progression.

“What I like most about being part of Robinson Reed Layton is the training ethos.  We are Investors in People and have achieved platinum approved status for our trainee development with the Association of Chartered Certified Accountants so further development is actively encouraged at all stages of your career.  Here I can continue to grow.”

Today Carole manages a portfolio of sole traders, partnerships and limited companies and is a key member of the Sage team for the firm that is Cornwall’s only Sage Accredited Accountant Partner.

She started work at Robinson Reed Layton aged just 17.

“I don’t know where the time has gone and it’s strange to think that I have met and married my husband as well as having two children while working for Robinson Reed Layton.”

She continues:

“The firm really understands family commitments and is excellent about childcare in particular.  It operates a leisure bank system whereby I can work extra hours at certain times of the year in order that I can take time off during the school holidays.  This type of flexibility reflects the firm’s family values and makes an enormous difference to me.”

Senior Partner Paul Reed is both pleased and grateful for their commitment.

“Our training programme is vital to furthering the careers of our staff members and the commitment from Carole and Lynn is enormously appreciated.  Both ladies have shown fantastically loyal service that our clients and our own team benefit from.”

Robinson Reed Layton presented special commemorative gifts to thank the ladies for their dedication.  Lynn was given some furniture for her new home and Carole was given a Pandora bracelet.

The match is taking place at the Recreation Ground, home to Cornish rugby, and is set to be an exciting game.  Taunton are an up and coming side, having come fourth in last year’s division so there should be fireworks on the pitch this Guy Fawkes Day.

Paul Reed, Senior Partner at Robinson Reed Layton explains the reasons for continuing to support ‘the Reds’:

“The firm has a history of supporting our local sportsmen and this game in particular promises to be very exciting.”

Jeff Knuckey, Commercial Manager of Redruth RC explains why this corporate sponsorship is so vital to the Club’s success:

“The support of companies like Robinson Reed Layton is the life blood of Redruth Rugby Club. We do not have a single major benefactor at the club and therefore depend on the support of over 120 local companies in order to maintain the standard of our rugby.

“Within this group of sponsors there is a nucleus of some 20 Corporate Sponsors who are major supporters of the club. Robinson Reed Layton has been a member of this special group for over 10 years. We are extremely grateful for the continuing level of support they give us. Robinson Reed Layton are true friends of Redruth Rugby Club.

“We look forward to meeting Paul Reed and all our old friends from the accountancy firm again with their guests and will do our very best to ensure that they have an unforgettable day both on and off the pitch.”

For further information on Redruth RFC please visit www.redruthrfc.com

Ten youngsters from Pencalenick School, near Truro, will spend a day at BF Adventure learning survival skills and building shelters and campfires.

Helen Campbell, Deputy Head from the school says that the students are excited:

“So many of the students wanted to join in but we have chosen those that have worked really hard and made good progress.  It is very kind of our accountancy firm Robinson Reed Layton to think of us as the students will have a terrific time.”

Paul Reed, Senior Partner of Robinson Reed Layton is happy to help:

“We enjoy working with Pencalenick School and know what an excellent asset it is to the local community.  We are well known for our accountancy work with schools and academies but it is nice to offer something different once in a while!”

Robinson Reed Layton is one of the leading advisors to the education sector in the county.

Staff wearing odd socks

Staff at Robinson Reed Layton put their best feet forward to raise funds for a local charity today and wore odd socks to support the special fundraising day for St Petroc’s Society and raised £130 to boot.

Partner Stephen Gainey joined in the fun:

“The staff of Robinson Reed Layton are always keen to support local charities and Odd Sock Day for St Petroc’s Society is an especially fun way to do it.  Our clients were most amused at our loud socks!  It is certainly a good way to raise awareness of St Petroc’s excellent work with the homeless of our city.”

If you would like more information on St Petroc’s Society then please visit www.stpetrocs.org.uk

Vicky Reynolds and David Horwell

Two members of the Cornish accountancy firm Robinson Reed Layton have passed the Professional stage of their Chartered Accountants (ACA) exams.

Vicky Reynolds and David Horwell have now successfully passed 12 exams, on their career path to becoming Chartered Accountants.

The pair are well on their way to completing the Advanced stage. They have just three more exams to pass and will need to complete 450 days of technical work experience, undertake training in ethics and finish an initial professional development scheme.

Paul Reed, Senior Partner of the firm, is delighted with Vicky and David’s success:

“Vicky and David have worked extremely hard to reach this level. They have both demonstrated considerable commitment to their careers and all of us at Robinson Reed Layton are pleased to support their progress. We wish them the best of luck with passing their Advanced stage next summer.”

David from St Austell and Vicky from Threemilestone began their training in September 2009. They are set to be fully qualified Chartered Accountants by next autumn.

David speaks for them both when he says, “The exams have been hard work, and we’re both extremely happy to have passed all our exams at the first attempt.”

The ACA qualification is awarded by the ICAEW (Institute of Chartered Accountants in England and Wales) and has two stages, the Professional stage that consists of ‘knowledge’ and ‘application’ modules and the Advanced stage.