Where the owners have other business activities, then there is the question as to whether it is best to combine them for tax purposes or whether it is better to separate them. Indeed, where a married couple own FHLs then there may be incentives to try and separate the businesses so that some FHLs are owned by one spouse and the remainder by the other. Company ownership may also be introduced as a means of separation.
The taxes most normally considered in terms of separating businesses are VAT and business rates. As far as IHT business property relief is concerned then it may be preferable to combine or separate businesses – depending on the circumstances.