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01 February 2013
Mrs G Silber (personal representative of the estate of Mr M Lerner deceased) (TC2369)
At the time of his death in 1999, the deceased owned the entire share capital in Towvale Ltd, an unquoted company to which he had given £107,210.
The appellant, the personal representative of the deceased’s estate, said the amount should not form part of the estate because it had been a gift, rather than a loan, and therefore was not liable to inheritance tax (IHT) as part of the estate.
HMRC argued that the £107,210 was a loan; there was no evidence it had been a gift. It was shown in the Towvale company accounts as an amount due to a creditor, the deceased, meaning it was liable to IHT.
The taxpayer’s appeal was dismissed.
