Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

HMRC debacle?

01 February 2011 / Emma Chamberlain , Chris Whitehouse
Issue: 4290 / Categories: Comment & Analysis , Inheritance Tax
The efficacy of home loan schemes is in question. EMMA CHAMBERLAIN and CHRIS WHITEHOUSE explain why

KEY POINTS

  • HMRC have changed their view on home loan schemes.
  • How the scheme was structured.
  • Challenge to schemes where debt payable on demand.
  • Impact of the pre-owned asset charge.
  • HMRC are ignoring their own guidance.

In October 2010 HMRC updated their ‘Income tax and pre-owned assets guidance section 5’ in relation to lifetime ‘double trust/home loan’ schemes by adding the following note:

‘Where the loan is only repayable at a time after the life tenant’s death HMRC is now of the view that these schemes are also caught as gifts with reservation. Further guidance including the consequences for the pre-owned assets charge will be issued shortly.’

So far no further guidance has been issued.

This statement was the first public indication that HMRC had changed their...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon