I wondered if anyone had in practice managed to successfully rely on the concession for infirm relative set out at FA86/Sch20/para 6(1)(b). See https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14342.
And if people have relied on this in practice, what circumstances applied.
I have a case where a residence was gifted over 10 years ago from Parent to Child with the intention of the Parent paying a market rental for a few years (a lease was in place) and then moving out. In practice due to the health circumstances (the onset of blindness / disability) and the financial inability to continue with the rental payments the Child was left in a predicament because they could not force their Parent to leave and the Parent, due to their infirmity, could not find a suitable affordable premises. The market rental stopped around 3 years after the initial gift and and although there was some contribution, there is probably a GWR…
The Child has a main residence elsewhere and uses the property during holidays - albeit the parents are moving out very shortly - having finally found affordable alternative accommodation and being persuaded to move.
Any thoughts or comments would be welcome.
Harold Sharp Limited