In Parveen Chadda and others v HMRC [2014] UKFTT 1061 (27 November 2014) the FTT found that a joint tenancy had been severed so that a property passed under a will using the IHT nil rate band.
Mr and Mrs Tobin had been married for many years when Mr Tobin passed away. They had held the matrimonial home as joint tenants; therefore for it to pass under Mr Tobin’s will (and not by survivorship) the joint tenancy should have been severed. The appellants believed that such severance had taken place but the document to that effect could not be located.
Under the will a ‘Nil Rate Band Trust’ came into effect. The amount to be given to the trust was to be equal to the upper limit of the nil rate band. If part of his share in the house had passed under the will...
