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Exception for actual occupation or enjoyment for full consideration

The main GWR provisions in FA 1986, s 102 are supplemented by provisions in FA 1986 Sch 20 which deal with particular circumstances. These rules include two exceptions to the general rule that a gift, which is not enjoyed to the entire exclusion of the donor, is subject to a reservation of benefit.

The first exception applies to a gift of an interest in land or a chattel. If the donor retains or assumes:

1. Ìý

   –ÌýÌýÌýÌý actual occupation of the land

2. Ìý

   –ÌýÌýÌýÌý actual enjoyment of an incorporeal right over the land (for example, sporting rights or a right of way), or

3. Ìý

   –ÌýÌýÌýÌý actual possession of the chattel,

it is disregarded if it is for full consideration in money or money's worth¹. In addition, there will probably be no pre-owned assets income tax charge on the property.

HMRC accepts that full consideration is given if there has been a bargain negotiated at arm's length by parties who are independently advised and which followed