Tax Tribunal's latest decision on home loan inheritance tax schemes

Tax Tribunal’s latest decision on home loan inheritance tax schemes

The First-tier Tax Tribunal has given judgment in the case of Elborne v HMRC [2023] UKFTT 626 (TC). The case concerns whether or not a home loan inheritance tax scheme designed to remove the value of a freehold interest in real property from an individual’s inheritance tax estate whilst at the same time enabling the individual in question to continue to live in the property rent-free achieves its intended effect. The Tribunal found that on the proper construction of the applicable legislation, including section 103 of the Finance Act 1986, which deals with the treatment of certain debts and incumbrances, the scheme failed to achieve its intended effect. The Tribunal’s conclusion, which is in line with its decision of earlier this year in the case of Pride v HMRC [2023] UKFTT 00316 (TC), is of wide importance given the use of home loan inheritance tax schemes in relation to real property over several years up and down the country.

Jonathan Davey KC acted for the successful respondents along with Barbara Belgrano of Pump Court Tax Chambers.

Read the full judgment

Related Insights View all thought leadership

Recent Cases
Permission to proceed? Derivative claim denied
Company law, Commercial disputes, Joint venture and partnership disputes, Trusts, probate and estates: contentious
Nikki Singla KC | Caspar Bartscherer
Tuesday 6 October 2026
View more
External Conferences
Informa Connect Transcontinental Trusts Conference Istanbul 2026
7 - 9 October 2026
CVK Park Bosphorus Hotel Istanbul, Turkey
Speakers:
Gilead Cooper KC | Clare Stanley KC | Jonathan Davey KC | Tom Roscoe | Michael Ashdown | Tommie Drury
View more
Events / Webinars
Save the Date – Trusts Litigation Day 2027
Monday 18 January 2027 | 9am - 5.45pm followed by drinks and dinner
InterContinental London, Park Lane
View more
Articles
Real property, real impact: the ground (f) questions left by Franses
Article by Benjamin Faulkner and Francesca Mitchell, published 28th September 2026 This article was originally published by Estates Gazette here. It used to be said that ground (f) cases under the Landlord and Tenant Act 1954 were a landlord’s to lose.... Read more
By Benjamin Faulkner | Francesca Mitchell
Monday 28 September 2026
View more