The Upper Tribunal has released its decision in Executors of Elborne & others v HMRC.
This is the latest instalment in the long-running, and ongoing, litigation over the efficacy of inheritance tax ‘home loan’ schemes. It is also the first decision on ‘home loan’ schemes at appellate level.
The First-tier Tribunal in Elborne (in common with a differently constituted First-tier Tribunal in Pride) had held that the scheme was ineffective by reason of FA 1986 s 103. The Upper Tribunal allowed the taxpayers’ appeal against this conclusion and dismissed HMRC’s cross-appeal on a further five issues
As Mrs Elborne died in 2011, it appears that the estate is still being administered some fourteen years after her death. Whether that is worth the pain, inconvenience and professional fees for the family is a moot point.
The full decision may be found at:
