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

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  • 20 Feb 2026 10:20

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