Effective gifts of paintings were made by ‘delivery’ for inheritance tax purposes.

The appellant (MS) was the surviving son and co-executor of the estate of his mother (OS), who died in March 2007. The other executor (AS) was OS’s late son, who died in November 2009.

The two main issues were whether there was an effective gift of three paintings in 1985 by OS and her late husband (PJS) to MS and AS, and whether there was an effective gift of six other paintings by the appellant's great aunt (JS), who died in December 1992, in favour of MS and AS in early 1986 or 1991. HMRC issued a notice of determination on the basis that there had been no effective delivery of the three paintings in 1985. HMRC also considered it impossible to say whether the six paintings were delivered in 1986 or 1991. MS appealed.  

The First-tier Tribunal (FTT) noted that the alleged gift by OS and PJS fell to