.png)
.png)
Issue:
4910
/
Categories:
Comment & Analysis
, gift with reservation of benefit
, HMRC investigations
, Inheritance Tax Manual
, Inheritance Tax
Not such a free gift
Key points
- The gift with reservation of benefit regime aims to prevent a donor retaining a gifted asset in all but name.
- A two-week stay in the property might constitute a reservation of benefit.
- The convalescence exemption may apply if the donee has to return to be cared for by the recipient.
- Tax planning must be looked at in the round to ensure no unexpected liabilities arise.
Gifts with a reservation of benefit (GROBs) are a notorious pitfall for people seeking to reduce their taxable estates on death.
For many taxpayers the bulk of the value of their estates may be comprised in a small number of assets such as land or personal belongings. Gifting these assets can therefore seem an attractive route to reducing the size of the taxable estate for inheritance tax purposes in turn reducing the liability to IHT on death – as long...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
