Commentary

I1.509 Gifts with reservation and non-deductible debts

IHT, trusts and estates

I1.509 Gifts with reservation and non-deductible debts

I1.509 Gifts with reservation and non-deductible debts

These are gifts (that is the term used in the legislation—it is wider in some respects and narrower in other respects than 'transfer of value') where possession and enjoyment of the property that is the subject-matter of the gift is not taken up by the donee, or the donee does not enjoy the property to the entire exclusion, or virtually to the entire exclusion, of the donor and of any benefit to him by contract or otherwise1 (see I3.401, I3.401A, I3.407). The property subject to the gifts, so long as there is no such possession and enjoyment by the donee, or no enjoyment by the donee of the property to the exclusion of the donor or any benefit to the donor (including benefit by associated operations), is 'property subject to a reservation'. Such property is treated as still owned by the donor unless and until the reservation of enjoyment or occupation by the donor ceases and/or the assumption of possession and enjoyment by the donee occurs;

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