This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Interests in possession: Sister’s will created an interest in possession in share of property for brother

By Mark McLaughlin, January 2020

Summary 

An individual’s will gave a joint tenant-in-common an interest in possession of the deceased’s share of a property to her brother, which formed part of the life tenant’s estate for inheritance tax purposes on his death. 

Background 

In 1985, the appellant’s parents (Mr and Mrs H) and her uncle (IT) decided to sell their respective homes and buy a house together. The property was purchased for £125,000 on 30 August 1985 by the three purchasers. They intended to live at the property for the remainder of their lives. 

The costs of the building works and furnishings were added to the cost of the house, and the total was used to determine the total cost and their respective financial contributions. The sale proceeds of IT

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Gifts did not fall within the exemptions for normal expenditure out of income or gifts to political parties
By Mark McLaughlin, May 2026
High Court accepted rescission claim relating to EBT appointments creating sub-trusts
By Mark McLaughlin, April 2025
Abatement rules applied to trust loan notes but gifts with reservation rules did not apply
By Mark McLaughlin, June 2023
No IIP in respect of house where insufficient other assets to pay IHT on deceased’s estate
By Mark McLaughlin, March 2023
Avoidance: ‘Home loan scheme’ unsuccessful as house sale to trustees was void
By Mark McLaughlin, April 2020