The TACS Partnership highlights a selection of pitfalls and planning points in respect of gifts with reservation of benefit for inheritance tax purposes.
Inheritance tax (IHT) is supposedly the most unpopular tax of all. Its unpopularity is not helped by anti-avoidance provisions concerning ‘gifts with reservation’ (GWR).
The GWR provisions (FA 1986, ss 102-102C; Sch 20) are broadly designed to prevent an individual seeking to reduce their IHT exposure by making a lifetime gift, which they hope to survive by at least seven years, whilst continuing to have the use or enjoyment of the gifted asset.
Outside your estate… or is it?
Subject to certain exceptions, a gift made on or after 18 March 1986 is ‘caught’ as a GWR if either the recipient does not take
