s102 Finance Act 1986

I have a client who owns 75% of a let property. In addition, he also owns 75% of some agricultural land which his ltd company farms. He is the life tenant of a trust which owns the other 25% of both the let property and the agricultural land.

I am aware that under s102 of the Finance Act 1986 it is possible to gift an undivided share in a let property whilst retaining the income and it is not caught by the reservation of benefit rules. If gifts of say 90% of the 75% interest my client owns were made does this rule also apply so that he could retain the rental on the let property and retain any rent required on the agricultural land.

Graham Bevan
DSG Chartered Accountants.