Inheritancetaxavoidance-pre-ownedassets

In the past, some people sought to reduce inheritance tax by giving away an asset, such as a house, while carrying on using it as before. Rules were introduced to counter this kind of arrangement, and where they apply they can result in an annual income tax charge on the benefit retained, rather than the gift simply working as intended.

These provisions are complex and can catch arrangements that were not originally set up with tax avoidance in mind. Anyone who has given away an asset but still uses or benefits from it, whether property, land or other valuable items, should have the position reviewed to understand whether these rules apply and what options exist.