In The executors of L Elborne deceased and others v HMRC [2025] UKUT 59 (TCC) (17 February) the Upper Tribunal (UT) held that a home loan scheme implemented by Mrs Elborne was effective. The sole ground on which HMRC had won at the First-tier Tribunal (FTT) the deductibility of the loan in her estate was overturned.
Mrs Elborne entered into a popular inheritance tax scheme in the early 2000s known as a ‘double trust’ or ‘home loan scheme’. Briefly this involved Mrs Elborne selling her main residence to a settlor-interested interest in possession trust for herself in exchange for a loan note. She then gifted the loan note to a second trust from which she was excluded from benefit. Mrs Elborne survived seven years from the gift which therefore fell out of account on her death. The intention of the...
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In The executors of L Elborne deceased and others v HMRC [2025] UKUT 59 (TCC) (17 February) the Upper Tribunal (UT) held that a home loan scheme implemented by Mrs Elborne was effective. The sole ground on which HMRC had won at the First-tier Tribunal (FTT) the deductibility of the loan in her estate was overturned.
Mrs Elborne entered into a popular inheritance tax scheme in the early 2000s known as a ‘double trust’ or ‘home loan scheme’. Briefly this involved Mrs Elborne selling her main residence to a settlor-interested interest in possession trust for herself in exchange for a loan note. She then gifted the loan note to a second trust from which she was excluded from benefit. Mrs Elborne survived seven years from the gift which therefore fell out of account on her death. The intention of the...
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