Landmark inheritance tax ruling could save families six-figure sums

A tribunal ruling in Elborne v HMRC has overturned a previous decision, providing potential inheritance tax relief for families who used 'home loan' schemes from the 1990s and early 2000s. This ruling could save families hundreds of thousands in tax bills, such as the £700,000 tax avoidance for Leslie Elborne's estate. The decision challenges HMRC's aggressive stance on older tax arrangements and sets a precedent for future claims. However, HMRC is disappointed and may appeal, prolonging the legal uncertainties for many families involved in these schemes.

"These were very popular schemes, but it's difficult for an individual taxpayer to take on the huge resources of the state and win," said Paul Davies.

"The tribunal's decision sets a precedent that could benefit thousands of families in similar situations," highlighting the ruling's broader implications.

Read at Business Matters