Andrew Goldstone and Moustapha Hammoud (Mishcon de Reya) provide your monthly update.
Hood: a gift subject to a reservation of benefit
In Hood v HMRC [2018] EWCA Civ 2405 Lady Hood (H) was a tenant under a head lease which contained positive tenant’s covenants to repair and maintain the premises during the term of the head lease. Having received consent from the superior landlord H granted a sublease of the property to her sons in 1997 as a gift. They covenanted to observe and perform the provisions of the head lease. Although granted in 1997 the term of the sub-lease would only actually commence in March 2012.
H died in 2008. HMRC issued a notice of determination on the basis that the grant of the sub-lease was a disposal by way of gift to the sons of ‘property subject to a reservation’ within the meaning...
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Andrew Goldstone and Moustapha Hammoud (Mishcon de Reya) provide your monthly update.
Hood: a gift subject to a reservation of benefit
In Hood v HMRC [2018] EWCA Civ 2405 Lady Hood (H) was a tenant under a head lease which contained positive tenant’s covenants to repair and maintain the premises during the term of the head lease. Having received consent from the superior landlord H granted a sublease of the property to her sons in 1997 as a gift. They covenanted to observe and perform the provisions of the head lease. Although granted in 1997 the term of the sub-lease would only actually commence in March 2012.
H died in 2008. HMRC issued a notice of determination on the basis that the grant of the sub-lease was a disposal by way of gift to the sons of ‘property subject to a reservation’ within the meaning...
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:
