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Families face inheritance tax trap after landmark legal case

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Families face inheritance tax trap after landmark legal case

In Mrs Elborne’s case, HMRC disagreed that her property, and the value of the loan debt, should be deducted from her estate for IHT purposes. 

This decision was upheld by a first-tier tax tribunal, meaning the family now face a potential tax bill of 40pc.

However, it did not agree with HMRC that assets of the trust should be included in the estate, inflating its value and potentially doubling the tax bill.

A spokesman for HMRC said: “We welcome the first-tier tribunal’s decision, which confirmed our longstanding view that properties subject to these arrangements remain an asset of an estate on death and are subject to IHT.”

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Mr Mooney said there was no “one-size-fits-all” when it came to home loan schemes. This means some families, instead of winding up the trusts, are instead “waiting to see what happens” when the person dies and HMRC assesses their IHT liability.

However, Jade Gani, of Circle Law, said the recent case shows that families who make no IHT saving and subsequently challenge HMRC’s decision could face “expensive and protracted litigation”.

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CryptoCurrency

Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week

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Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week


According to data from CryptoQuant, cbBTC circulation supply has outpaced long-established players seven days after launch. 



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Bitcoin options markets reduce risk hedges — Are new range highs in sight?

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Bitcoin options markets reduce risk hedges — Are new range highs in sight?


Bitcoin options market positioning shifted as BTC price shot through the $60,000 to $63,000 level. 



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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 

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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 


Ether price could be on track for another correction into a triple-bottom, marking the beginning of a big rally into 2025.



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Blockdaemon mulls 2026 IPO: Report

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Blockdaemon mulls 2026 IPO: Report


Other Web3 infrastructure platforms, such as Circle, are also mulling IPOs.



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SEC asks court for four months to produce documents for Coinbase

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SEC asks court for four months to produce documents for Coinbase


The financial regulator requested an extension until February 2025 to review “at least 133,582 unique documents” as part of discovery motions with Coinbase.



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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec

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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec


Ethereum is still home to the most active crypto developers and is the most attractive chain to build applications on top of for big companies, argues Bitwise’s Matt Hougan.



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