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Advice is required on a variation of the “double trust home loan” scheme to pass property to the next generation, while retaining use of it. The strengths and weaknesses of the new scheme are discussed
We are aware that the “double trust home loan” inheritance tax mitigation schemes which were popular during the last decade are now under attack from HMRC.
We understand that the broad structure of these schemes was that an individual would: sell their residential property to one trust; leave the proceeds outstanding as a loan; and then gift the loan to the second trust.
The beneficiaries of the second trust were the individual’s children with the donor being excluded from benefit.
As a consequence a potentially exempt transfer of the value of the property at the date of the transaction had therefore been made to the children while the individual continued to live in the residential property.
We have become aware of another inheritance tax mitigation idea that still seems to be promoted and which appears to be a simplified variation of the double...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
