Gift with reservation of benefit (GROB)

Also abbreviated to GWROB or GWR.

For inheritance tax (IHT) purposes, a gift that is not fully given away because the person making the gift (the donor) keeps back some benefit for himself. For example, if a donor gives his home to his adult children (who live elsewhere) and continues to live there rent free, this would be a GROB and caught by section 102 of the Finance Act 1986, which charges such gifts to IHT as though they remained in the donor's estate.

For further information, see Practice notes, Inheritance tax: overview: Anti-avoidance measures: Gifts with reservation of benefit and Inheritance tax: gifts with reservation of benefit: overview.