Thursday 11 February 2016
First-tier Tax Tribunal rules on inheritance tax gift with reservation provisions
The Estate of Lady Hood v Commissioners for HM Revenue and Customs (First-tier Tax Tribunal) [TC/2014/04688]
Jonathan Davey has acted successfully for the Respondents in an important inheritance tax dispute which came before the First-tier Tax Tribunal in January 2016. The case concerned the late Lady Hood’s grant of a long lease in respect of residential property in Chelsea.
The question was whether in granting the lease, she had reserved a benefit within the meaning of the relevant IHT legislation thereby giving rise to a tax liability for her Estate. The Tribunal found that on a proper analysis of the facts and relevant legal principles she had reserved such a benefit. The appeal of the Estate was therefore dismissed.
The case is of significance as the first set of proceedings to test the scope of the Court of Appeal’s important decision in Buzzoni v Revenue and Customs Commissioners  EWCA Civ 1684.
People to view: