Wagstaff & anr v HMRC [2014] UKFTT 43 (TC)

Wills & Trusts Law Reports | April 2014 #138

During 1990 Mr Wagstaff’s mother (Barbara) bought a flat for herself to live in (the flat). On 6 January 1996 she sold the flat to the appellants for £45,000. It was agreed that this was an arm’s length price. The sale was subject to the terms of an agreement of the same date (the agreement). The agreement provided that Barbara was entitled to continue to live at the flat at no cost until her death or remarriage, subject to a payment of £5,000.

Barbara continued to occupy the property until August 2005 when an accident meant she could no longer do so. After some time ...