(1) THE EXECUTORS OF MRS LESLIE VIVIENNE ELBORNE DECEASED (2) THE TRUSTEE OF THE ELBORNE LIFE SETTLEMENT (3) THE TRUSTEES OF THE ELBORNE FAMILY SETTLEMENT v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2025] UKUT 00059 (TCC)
Upper Tribunal Tax and Chancery decision of Judges Jeanette Zaman and Vimal Tilakapala 17th February 2025
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INHERITANCE TAX � sale of home by deceased to trustees of a trust in which she held an interest in possession, consideration for which was a promissory note � trustees resolved to allow deceased to continue to reside in home � gift of note by deceased to a second trust under which she was precluded from benefitting � deceased died more than seven years after this gift � FTT dismissed appeal holding that in valuing the estate the liability under the note should be abated to nil under s103 FA 1986 � Appellants appealed against that conclusion and HMRC cross-appealed on five issues � held � Note issued by the trustees was not a debt incurred by the deceased � appeal allowed, cross-appeal dismissed � decision of the FTT set aside � decision re-made � appeal allowed
(1) THE EXECUTORS OF MRS LESLIE VIVIENNE ELBORNE DECEASED (2) THE TRUSTEE OF THE ELBORNE LIFE SETTLEMENT (3) THE TRUSTEES OF THE ELBORNE FAMILY SETTLEMENT v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2025] UKUT 00059 (TCC)