The gift that keeps on taking: Understanding gift with reservation of benefit rules

Gifting an asset directly to a loved one or indirectly via a trust can be a really effective way of mitigating Inheritance Tax (IHT). However, care needs to be taken to make sure that HMRC doesn’t put the kibosh on your well-laid plans. If they view your action as a “gift with reservation of benefit” then the asset in question will still be viewed as part of your estate for IHT.

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