Historical IHT planning schemes
Produced in partnership with Stephen Parnham of Stephen Parnham Taxation Limited
Historical IHT planning schemes

The following Private Client guidance note Produced in partnership with Stephen Parnham of Stephen Parnham Taxation Limited provides comprehensive and up to date legal information covering:

  • Historical IHT planning schemes
  • Introduction
  • The Ingram scheme
  • The Eversden scheme
  • The reversionary lease scheme
  • Home loan or double trust schemes


The core legislation found in the Inheritance Tax Act 1984 (IHTA 1984) and the former capital transfer tax regime contained an oversight. There was nothing to prevent an individual seeking to reduce exposure to inheritance tax (IHT) on death from making a lifetime gift (with the hope of surviving at least seven years) while continuing to have the use or enjoyment of the gifted asset. Under the legislation, it was therefore possible for an individual effectively to give away their home for IHT purposes while continuing to occupy it.

The gift with reservation of benefit (GWR or GROB) provisions introduced by section 102 and Schedule 20 to the Finance Act 1986 (FA 1986) were designed to close this loophole. Where the GROB provisions apply, the gifted (or in some cases, substituted) property is generally treated as remaining part of the donor’s estate for IHT purposes while the donor continues to benefit. The provisions can apply if (among other things) an individual makes a gift of property on or after 18 March 1986 which is not subsequently enjoyed to their entire exclusion, or virtually their entire exclusion.

A GROB may be avoided if the donor pays a full market rent for any periods of occupation or use of the gifted property.

For further information on the GROB rules, see Practice Note: IHT—gifts