What can we learn from Phizackerley?

In the world of financial services, however, care must be taken when making substantial gifts, as was recently highlighted by the Phizackerley case. The case is well reported, but to recap, relates to a main residence scheme where an ‘IOU’ or debt was intended to arise on the first death of Dr and Mrs Phizackerley. In this case, Mrs Phizackerley died first and a debt, to the value of her half share in the property was created – a common approach. The key point to address is that HMRC did not challenge the use of a debt or ‘IOU’ but actually the original source of the funds. Focusing o...