Gifting shares – Don’t make a ‘reservation’!

It is common for shares in a family company to be passed down the generations. However, anti-avoidance rules dealing with ‘gifts with reservation’ (GWR) are a potentially nasty inheritance tax (IHT) trap. Cake and eat it The GWR provisions (FA 1986, ss 102-102C; Sch 20) are broadly designed to prevent an individual seeking to reduce […]

Gifting The Family Home – An IHT Trap

It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]

Gifting The Family Home – An IHT Trap

It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]