Kate Selway KC has successfully represented the taxpayers in the recent First Tier Tribunal decision of Hall v HMRC  UKFTT 32 (TC) in an important case about occupation rights arising under a will and the nature of interests in possession for tax purposes.
The issue was whether an interest in possession (IIP) for IHT purposes arose when the beneficiary under a will, permitted to occupy a particular property (but not a substitute property) for the rest of his life upon certain conditions, and who did so occupy that property, had an IIP in the property in circumstances where the liquidity of the estate was insufficient to pay the IHT without selling the property. When the residuary beneficiaries decided not to sell the house, but raise the IHT themselves, in the mistaken belief that the beneficiary had a full life interest, did that mean that an IIP arose, when it was accepted that if the house had been sold, no IIP would have arisen? The Tribunal judge decided that no IIP arose.
Kate will be publishing an article on this important decision shortly.
You can read the full judgement, here.