Reversionary Lease Scheme

Contentious Trusts & Estates
1

Dear all
We are instructed in the administration of an estate where the deceased had, some years previously, entered into a reversionary lease scheme granting a lease to her daughter to come into effect some years later and a peppercorn rent.

As the lease required the tenant (the daughter) to pay the insurance premiums on the property and to keep the property in repair, HM Revenue & Customs are alleging a reservation of benefit in accordance with the case of Viscount Hood v HMRC 2018.

It would be helpful to know:

  1. Whether other STEP members have experienced similar problems in relation to other estates; and
  2. If so, whether, STEP members have had to accept HM Revenue & Custom’s contention or whether any “horse trading” was possible.

Any help would be most gratefully received.