With some reservation

In January 2002 Mr F gifted his son and daughter a third share each of his owner-occupied property. He continued to live in the property and (on solicitor's advice) a 20 year lease was signed and he paid a market rent to his son and daughter to avoid the gift with reservation rules.

Unfortunately the solicitor failed to advise them to index link the rent. The property was valued in January 2002 at £400 000 and has now been valued at £600 000.

Mr F died in May 2008 a few months short of the seven-year rule and the executors realised the position. However they believe that it is possible that changes in Mr F's circumstances over the years would have indicated rent decreases rather than increases.

A year after the lease was signed Mr F's health deteriorated and he was only able to...