This is part of the UK's tax legislation to managing the risk of tax avoidance. The GAAR legislation defines what are, for its purposes, tax arrangements that are abusive. The GAAR applies to Income Tax, Capital Gains Tax (CGT), Inheritance Tax (IHT) and other taxes which aren't directly associated with offshore bonds. For full details on the GAAR, you can visit http://www.hmrc.gov.uk/avoidance/gaar.htm
Gift with Reservation
Where a Donor/Settlor makes a gift but retains an interest in the gift or continues to enjoy the benefits of the gift. When a Gift with Reservation is created, the property is included in the Donor's/Settlor's estate for IHT purposes. For example: You gift your expensive sports car to your child, but you still drive it at weekends.
Grant of probate (UK or IOM)
This is an official document issued by the Probate Registry which the executors use to administer the estate of the deceased. The UK executors must be given Grant of Probate from the UK Probate Registry before they can apply for Isle of Man Probate. For more information, you can read our "Benefits of putting an offshore bond in trust"(TECH006) document for more information about Isle of Man Probate.
Guaranteed minimum death benefit
The minimum amount the policy will pay out if the policyholder dies, as long as they make all the payments due.