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 they have 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 they reserve 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+™
  • 20 Feb 2026 10:20

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

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more Read more
Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more