Failed gifts? Has recipient provided consideration?

Has anyone come across a scenario please where the deceased (H) took other family members on holiday to help them care for their disabled/frail spouse (W) and whether any exemption can be applied to those costs in the event they may be failed PETs? In this instance family members have been on several luxury cruises with the H&W and provided care and support so that the H could have some ‘down time’. They also provided companionship for the couple during the trips as well as attending to practical matters like taking W to the bathroom in public areas as her husband could not take her. The holidays include private jet travel, which we are informed he would have taken no matter who accompanied him. The total for these trips is in excess of £100,000 in some years.

Later in life when W’s condition and care needs were greater, he paid private carers to accompany him on these holidays.

We have further investigations to undertake but has anyone argued that there is some form of consideration for the gift. If the couple had been at home the deceased would have been paying for private care at home in any event so to some degree the holiday costs were just a substitute for the care costs.

From what we have gathered so far, the payments were made from capital and we have no chance of arguing a gifts out of excess income exemption. The family money was also held by the deceased (H), partly from a practical perspective due to W capacity issues and partly because he was the breadwinner during their marriage and he would simply pay for everything she needed.

The estate has spouse exemption but depending on how the holidays are treated along with some additional failed cash PETs, there is likely to be some tax due


I can only suggest considering - IHTM04171 - Dispositions for the maintenance of the transferor’s family.?