.png)
.png)
In 2002 Mr H (who died in 2013) entered into a home loan scheme. The agreed purpose was to remove the value of his home from his estate for inheritance tax purposes while he continued to live in it rent-free until his death.
Broadly this involved the sale of Mr H’s home to a trust in return for a loan which was gifted to his children. The agreements were intended to provide stamp duty savings in essence by deferring completion after exchange. With effect from 6 April 2005 Mr H became liable to pre-owned asset tax which was paid for the years 2005-06 to 2013-14.
On Mr H’s death it was agreed the property was worth £2.85m. The beneficiaries sold it in 2016 for £3.9m.
HMRC claimed the scheme did not work and that the house should form part of Mr H’s estate. The taxpayers appealed.
The First-tier...
