Beware of the IHT Trap – Gifts With Reservation of Benefits
Planning to give away an asset but still plan on benefitting from it? The Gifts with Reservation of Benefits rules (“GWROB”) are an anti-avoidance provision introduced to prevent avoidance of UK Inheritance Tax (“IHT”).
This article discusses the GWROB rules and certain exceptions where the GWROB rules will not apply. Please note that this article does not discuss the Pre-Owned Asset Charge rules.
What are the GWROB rules?
Traditionally, where a person makes a gift of a property (and is not a chargeable transfer or an exempt transfer), this will cease to be part of their estate if the donor survives 7 years from the gift. This is also known as a Potentially Ex...
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