In Viscount Hood executor of the estate of Lady Diana Hood v HMRC [2016] UKFTT 59 (2 February 2016) the FTT found that a sub-lease had been gifted subject to a reservation of benefit for the donor (FA 1986 s 102).
Viscount Hood appealed against a notice of determination of IHT liability relating to the grant of a sub-lease by Lady Hood to her three sons. HMRC contended that the gift had been made with reservation of benefit because the sub-lease provided for an indemnity from the sub-lessees for the performance of Lady Hood’s duties under the head lease.
The FTT observed that following Buzzoni [2014] 1 WLR 3040 the focus was not primarily on the question of whether the donor had obtained a benefit from the gifted property but rather of whether the donees’ enjoyment of that property remained exclusive. The...
