Yes you may very well be correct. However, since you have a test case, would it not be worth making an argument to the Revenue to see if they would accept RNRB in this scenario? I think there is certainly an argument that s.8J(5)-(6) taken together provide that:
- An asset given away with reservation is an asset in the estate capable of being a QRI (6)
- Such an asset can also be a settled asset within (5)
- The person who receives the beneficial interest following D’s death is considered to ‘inherit’ (5)
I agree with your point regarding downsizing as it deems that an IPDI is required for this, not merely an IIP.
Tobias Gleed-Owen
Hewitsons LLP