In L Carvajal and another v HMRC [2024] UKFTT 651 (TC) (11 June 2024) the First-tier Tribunal held that the taxpayer must succeed in their appeal against the determinations issued by HMRC in respect of £588 700 of IHT. This was because of the erroneous issue of an IHT clearance certificate by HMRC which protected the position of the executors.
Mrs Fleet effected a deathbed IHT scheme on 16 May 2011 and died eight days later. As part of the scheme she provided a guarantee of £1.4m for a trust company which was a trustee of a trust settled by her for the benefit of her sons (the executors in this case). The trust company took out a loan for £1.4m purchased bonds with the funds and distributed them to the beneficiaries.
The IHT400 for the estate was submitted with a deduction shown and taken for the £1.4m guarantee ...
