G7. Reorganisation of share capital

- Re-organisation prior to gift of shares

 

- XX IHTA 1984 s.98

- HMRC will normally disregard rights that can only be exercised in a fiduciary capacity (IHTM14395).

- This might be relied on where donor gifts shares to trust and exercises voting rights as trustee.

- No reservation if voting rights carved out by pre-gift re-organisation.

- But query whether the reorganisation + gift will fall within IHTA 1984, s.98(3) - deemed transfer of value that is not a PET (see McCutcheon 7-140).

Legislation: IHTA 1984, s.98(3);

Cases: 

HMRC manuals: IHTM14337; IHTM14395; 

Commentary: McCutcheon 7-134; 

See also:

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