Anthony Nixon (Paris Smith) examines the first judicial ruling to accept that the double trust home loan scheme works to save inheritance tax.
Reservation of benefit
Reservation of benefit is central to inheritance tax. Simply put if you continue to benefit from what you have given away your gift remains in your IHT ownership. The core definition in FA 1986 s 102(1) begins:
‘... this section applies where ... an individual disposes of any property by way of gift and either—
(a) possession and enjoyment of the property is not bona fide assumed by the donee at or before the beginning of the relevant period; or
(b) at any time in the relevant period the property is not enjoyed to the entire exclusion or virtually to the entire exclusion of the donor and of any benefit to him by contract or...
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Anthony Nixon (Paris Smith) examines the first judicial ruling to accept that the double trust home loan scheme works to save inheritance tax.
Reservation of benefit
Reservation of benefit is central to inheritance tax. Simply put if you continue to benefit from what you have given away your gift remains in your IHT ownership. The core definition in FA 1986 s 102(1) begins:
‘... this section applies where ... an individual disposes of any property by way of gift and either—
(a) possession and enjoyment of the property is not bona fide assumed by the donee at or before the beginning of the relevant period; or
(b) at any time in the relevant period the property is not enjoyed to the entire exclusion or virtually to the entire exclusion of the donor and of any benefit to him by contract or...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
