Commentary

I3.750 Effect on existing arrangements—introduction

IHT, trusts and estates

I3.750 Effect on existing arrangements—introduction

Effect on existing arrangements

I3.750 Effect on existing arrangements—introduction

The examples of everyday transactions which might attract the provisions are too many and too various to consider comprehensively in this Division; it is simply a case of applying the legislation to the facts in issue. However, practitioners may well have clients who have engaged in some of the better known avoidance schemes and it may therefore be helpful to consider how these are affected (discussed at I3.751–I3.756)1. Most of these schemes have typically concerned the family home. It is assumed in each case that the arrangements in question were entered into after 17 March 1986 and before the introduction of any legislative amendments (if any) blocking the scheme in question, other than FA 2004, Sch 15.

Gifts of cash

One method which is thought to avoid the application of the reservation of benefit rules involves the giving of cash proceeds to the donee, rather than the house itself. A benefit for the purposes of the reservation of benefit provisions must be referable to the gift itself. If the intending

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