Hall & anr v HMRC [2023] WTLR 529

Wills & Trusts Law Reports | Summer 2023 #191

Mrs Raboni, a widow, owned a freehold house in which she resided. As her health worsened, a friend, Mr Boggia, helped her and began to spend nights at the property. On 2 October 2004, Mrs Raboni passed away. Her will provided that her five nieces and nephews were the beneficiaries of her estate and that Mr Boggia was permitted to reside in the property during his lifetime without charge. It was not disputed that Mr Boggia resided in the property after Mrs Raboni’s death. The residuary beneficiaries were advised that there were insufficient funds in the estate to pay IHT unless the proper...

IHT: Unintended consequences

The nexus between pension transfers and IHT is not straightforward. Duncan Bailey and Imogen Trafford report on Commissioners for HMRC v Parry, which provides welcome guidance Mrs S’s omission was the operative cause of the increase in the sons’ estates and therefore under s3(3) inheritance tax was chargeable. The Supreme Court has ruled on a …
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IHT: Track changes

Nicholas Harries and Charlotte Kynaston explore draft inheritance tax legislation on additions to settlements and transfers between settlements ‘The facts of the Dreelan case were unusual, but the key message was that non-UK property transferred between settlements could retain its excluded property status, even if the settlor was UK domiciled or deemed domiciled at the …
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IHT: Bringing tax into the digital age

The Office of Tax Simplification has published the first part of its report into IHT. Sarah Murphy discusses ‘These observations drawn from the OTS review certainly seek to move the system into a position whereby it is future proofing its relevant application.’ In January 2018 the Chancellor asked the Office of Tax Simplification (OTS) to …
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IHT: Simplification is not a simple process

Tim Harrison analyses recent research into the workings of IHT and examines the future agenda for reform ‘Testators and beneficiaries had quite a limited understanding of inheritance tax. Most were aware of the basic principles of the tax but few knew the details of either the threshold or the spouse exemption.’ On 4 July 2015 …
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IHT: Charity begins at home?

Anthony Nixon, Martin Cross and Clementine Burch provide an update on ‘charitable purpose’ outside the UK and the IHT exemption ‘It is clear from other case law that “charitable purposes” could be carried on anywhere in the world, even though this was not stated in the Charities Act 2006.’ The late Beryl Coulter’s executors have …
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IHT: The importance of motive and intent

David Rees QC, Eliza Eagling, Bryony Cove and Adam Carvalho discuss a key pensions case which resulted in a taxpayer victory ‘The FTT held that Mrs Staveley’s sole motive in making the transfer was to prevent her ex-husband benefiting on her death by severing all Morayford ties.’The case of HMRC v Parry [2017] related to …
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IHT: Out of step

Sadiya Choudhury reviews a case considering the IHT consequences of the transfer of a reversionary interest to an offshore settlement ‘This decision is one of the few examples in which the tribunal or the courts have applied the principles of anti-avoidance as developed in the case law in an IHT context.’In Michael Lawton Salinger and …
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Tax Update: Changing landscapes

Deborah Pennington and James Bromley give the lowdown on tax changes for private clients ‘The “stealth tax” is not a new tax by itself, but is a package of measures which the government says is intended to curb perceived avoidance of tax by offshore property developers. Broadly, the intention is to ensure profits from such …
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