Concessions to Gift with Reservation Rules Rental Property
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When considering ‘gifting’ solutions for Clients to aid in reducing their potential Inheritance Tax (IHT), it is generally perceived that the donor of a gift cannot retain any benefit of the gift for it to be IHT efficient. Otherwise, it would be deemed to be a ‘Gift with Reservation of Benefit’ (GWROB) and HMRC will deem the gift still accountable to the donor’s Inheritance Tax calculation on death.
There are however, some exceptions to that rule. This Key Features and Benefits considers a Buy to Let property with the owner retaining the rent that the property produces.