Hosking v Revenue and Customs (INHERITANCE TAX - exempt transfers - s.21 of IHTA 1984 - whether Gifts part of normal expenditure - whether a pattern of actual regular payments established - s.24 of IHTA 1984 - Human Rights Act 1998, Articles 10, 14 and Article 1 Protocol 1 - whether discrimination on grounds of "political opinion") [2026] UKFTT 406 (TC) (18 March 2026)

Hosking v Revenue and Customs (INHERITANCE TAX - exempt transfers - s.21 of IHTA 1984 - whether Gifts part of normal expenditure - whether a pattern of actual regular payments established - s.24 of IHTA 1984 - Human Rights Act 1998, Articles 10, 14 and Article 1 Protocol 1 - whether discrimination on grounds of "political opinion") [2026] UKFTT 406 (TC) (18 March 2026)

Mr Hosking's donations did not constitute normal expenditure under section 21 IHTA 1984 as there was no settled pattern, commitment, or formula; the Gifts were not made to qualifying political parties and thus not exempt under section 24; there was no direct or indirect discrimination under the ECHR as the statutory scheme applied neutrally and any difference in treatment was justified.

Citation
[2026] UKFTT 406 (TC)
Parties
Appellant: Jeremy John Hosking; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 March 2026
Procedural Posture
Tax Appeal (inheritance Tax) / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Inheritance Tax, Exempt Transfers, Political Donations, Normal Expenditure Out of Income, Discrimination (echr), Freedom of Expression
Tax Law Human Rights Law Inheritance Tax Exempt Transfers Political Donations Normal Expenditure Out of Income Discrimination (echr) Freedom of Expression

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Parties

Jeremy John Hosking

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal (inheritance Tax) / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether the Gifts were exempt transfers under section 21 of IHTA 1984 as part of normal expenditure out of income
  2. 2 Whether the Gifts were exempt under section 24 of IHTA 1984 as political donations, when construed compatibly with the ECHR

Ratio Decidendi

Mr Hosking's donations did not constitute normal expenditure under section 21 IHTA 1984 as there was no settled pattern, commitment, or formula; the Gifts were not made to qualifying political parties and thus not exempt under section 24; there was no direct or indirect discrimination under the ECHR as the statutory scheme applied neutrally and any difference in treatment was justified.

Court Disposition

Appeal dismissed

Orders

  • The determination of HMRC charging inheritance tax on the Gifts is upheld.
  • No exemption applies under section 21 or section 24 of IHTA 1984.