The appeal centred around the use of an interest in possession trust, known as a ‘home loan scheme’, which left a £1.8m property (the Old Rectory) to the descendants of Leslie Vivienne Elborne once she died, but allowing her to live in the house until that time.

This home loan, or double trust scheme, was first used in the late 1990s into the early 2000s, but changes to stamp duty in 2003 ‘largely put a stop to them as property sales could no longer be left resting on contract’ said HMRC.

To use the scheme a property would be sold to a trust to be held for the owner’s benefit, then the trust owes the donor for the purchase, the amount is left outstanding by way of a loan.

This loan is then transferred to another trust until the donor’s family are to inherit the property, but the donor can continue to live in the property, however once they pass away the property will stay in their estate with the value being nullified by the debt.