Upper Tribunal rules on inheritance tax gift with reservation provisions

The Estate of Lady Hood v Commissioners for HM Revenue and Customs (Upper Tribunal) [2017] UKUT (TCC)

Jonathan Davey QC has acted successfully for the Respondents in an important inheritance tax dispute before the Upper Tribunal (Tax and Chancery Chamber). The case concerned the late Lady Hood’s grant of a long lease in respect of residential property in Chelsea. The question in issue was whether in granting the lease, Lady Hood had reserved a benefit within the meaning of the relevant IHT legislation thereby giving rise to a tax liability for her Estate. The Upper Tribunal (Mrs Justice Rose and Chamber President Judge Bishopp) upheld the decision of the First-tier Tribunal (Judge Berner) ([2016] UKFTT 59 (TC)) 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 in testing the scope of the Court of Appeal’s important decision in Buzzoni v Revenue and Customs Commissioners [2013] EWCA Civ 1684.

Read the decision (CROWN COPYRIGHT © 2017)