Inheritance Tax- Gift With Reservation of benefit (GWR)- how Henry Adams can help!

27 November 2023

Inheritance Tax- Gift With Reservation of benefit (GWR)- how Henry Adams can help!

When a property is gifted and the transferor survives by seven years, the transfer is exempt from IHT.

If the transferor continues to receive a benefit from the property (ie: they still live or stay at the property frequently) then this could be seen as a Gift With Reservation and IHT may still be chargeable due to rules which have been created to protect Inheritance Tax.

In order to avoid making a Gift With Reservation, it is therefore relatively common practice to put in place an agreement whereby the transferor is allowed to visit or stay at the property and a rent is charged.

Our Chartered Surveyors work alongside our Lettings and Holiday Lets departments to provide expert advice on the Rental Market in West Sussex and can advise on the appropriate rental levels, taking into account the time of year, how much of the property will be used and the length of the stay(s).

Please do not hesitate to get in touch on 01243 215840 should you wish to discuss any aspect of the above or if you would like us to provide a fee quote for a Market Rent Valuation.

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