Gifts with reservation ― further provisions

Copyright © 2026 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Gifts with reservation ― further provisions

Copyright © 2026 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Introduction

This guidance note looks at the specific gifts with reservation rules regarding:

  1. •

    agricultural and business property

  2. •

    substitutions and accretions

These additional rules are to be found in FA 1986, Sch 20.

It also considers the gift with reservation (GWR) consequences when a person redirects property he has inherited under an instrument of variation.

Agricultural property relief (APR) and business property relief (BPR)

Special rules apply where a donor reserves a benefit in a gift which qualifies for BPR or APR. The availability of those reliefs depends on:

  1. •

    the character of the property given

  2. •

    the nature and extent of the ownership

  3. •

    the duration of ownership and occupation

All the relevant conditions are set out in the Agricultural property relief (APR) and BPR overview guidance notes.

Where a donor makes a gift which qualifies for APR or BPR, and he reserves a benefit in it, it will be necessary to determine whether the property still qualifies for APR or BPR when

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 06 Oct 2022 06:26

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / GWR and other anti-avoidance

Popular Articles

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more
Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more