Inland Revenue Commissioners v Eversden and Another: ChD 10 Jul 2002

A settlor had created a discretionary trust in favour of her husband. The Commissioners sought to apply the reservation of benefit provisions.
Held: The settlor’s retained entitlement as a discretionary beneficiary did constitute a reservation of interest within section 102(3). However, the exemption from Inheritance Tax in favour of transfers between spouses had overriding effect, so that the rules taxing gifts with a reservation of benefit for the donor did not apply. Whether a gift was an exempt transfer was determined at the time of the gift, and was a for once and for all assessment.
Mr Justice Lightman
Times 18-Jul-2002, Gazette 19-Sep-2002, [2002] EWHC 1360 (Ch), [2002] WTLR 1013, [2002] BTC 8035, [2002] STI 1008, [2002] NPC 96, [2002] STC 1109
Inheritance Tax Act 1984 18 102(3)
England and Wales
CitedIngram and Another v Commissioners of Inland Revenue HL 10-Dec-1998
To protect her estate from Inheritance Tax, the deceased gave land to her solicitor, but then took back a lease. The solicitor then conveyed the land on freehold on to members of her family.
Held: The lease-back by the nominee was not void as . .

Cited by:
Appeal fromCommissioners of Inland Revenue v Eversden Eversden (As Executors of the Will of Greenstock Deceased) CA 15-May-2003
The executors challenged the assessment to Inheritance tax on the estate. The commissioners claimed that a gift of property into a trust included a sufficient reservation of benefit to disallow it as an exempt transfer.
Held: The scheme was . .

These lists may be incomplete.
Updated: 21 March 2021; Ref: scu.174446