It does not matter whether the donor’s non-exclusion
commenced at the time the gift was made or whether or not it was
continuous.
Even if there is no reservation at the time the gift was made
or immediately afterwards, the GWR provisions will still apply if
at any time during the relevant period the donor was not
excluded.
A father gives his freehold property to his son but at the same
time grants a long lease of the property to himself. The terms of
the lease are genuinely commercial and provide for the payment of
the full market rent which is to be reviewed regularly.
The full market rent is paid for the first ten years but
thereafter is not reviewed in accordance with the provisions of the
lease and ceases to be commercial. The situation continues until
the death of the donor fifteen years after the gift.
This is a GWR because within the relevant period the rental
which was paid did not represent full consideration so FA86/SCH20
Para6 (1)(a) does not prevent the occupation from being a
reservation.
