Lord Hermer, the Attorney General, is under investigation following revelations about a gifted property and past legal work involving discredited war crimes allegations against British soldiers. The gifted land, valued at £1.5 million, appears to have been strategically transferred to avoid substantial inheritance tax.
Attorney General Lord Hermer has received planning approval to construct a luxury holiday home on a substantial plot of land valued at £1.5 million, a gift from his wife’s parents.
This transaction has drawn scrutiny due to its potential to circumvent a significant inheritance tax liability, estimated to be as high as £470,000. The land and two accompanying large barns were transferred to Lord Hermer and his wife in March 2019. The timing of this gift is crucial, as it leverages the ‘seven-year rule’ – a provision in UK inheritance tax law that exempts gifts from taxation if the donor survives for seven years after making the transfer.
This rule effectively shields the property from the inheritance tax that would otherwise be due upon the death of the gift-givers. The Hermers have already begun developing the site, installing a natural swimming pool and a landscaped seating area, indicating their intention to fully utilize the property. Further plans include the conversion of a large 18th-century barn into a lavish residence boasting four en-suite bedrooms, two lounges, a dedicated games room, and storage facilities for boats.
A smaller barn on the property had already undergone conversion into a habitable dwelling prior to the transfer of ownership. The controversy surrounding Lord Hermer extends beyond the property acquisition. Recent allegations have surfaced concerning his conduct during his time in private practice. It is claimed that he charged a substantial hourly rate of £450 while pursuing war crimes claims against British soldiers, allegations that were later discredited as deliberate falsehoods.
Specifically, he is accused of acting as lead counsel in civil lawsuits brought against the Ministry of Defence by Iraqi citizens who alleged torture and murder by British troops during the Battle of Danny Boy in 2004. These claims were ultimately deemed untrue, leading to accusations that Lord Hermer engaged in a ‘witch hunt’ against the soldiers involved.
Documents obtained by The Daily Telegraph suggest that Lord Hermer was even warned that his clients’ claims were dubious and potentially fabricated, with concerns raised that they were motivated by financial gain. This has prompted calls for his resignation and a formal complaint to the barristers’ regulatory body, alleging serious professional misconduct.
A spokesperson for the Attorney General vehemently denies these allegations, asserting that Lord Hermer has consistently maintained the highest professional standards and that any suggestion of knowingly acting on false claims is entirely unfounded. The planning permission for the development on the Sussex land was granted in 2023, though sources close to the couple indicate that they have not yet commenced the construction phase.
The transfer of ownership involved five separate but adjoining title deeds, all passed from Lord Hermer’s wife’s parents, who reside in a nearby property they own. While the combined valuation of the plots reached £1.5 million, no financial transaction was recorded, confirming the transfer as a gift. This arrangement raises questions about the potential for utilizing gifting strategies to minimize inheritance tax liabilities. Lord Hermer and his wife also maintain a residence in London, purchased in 2005 for £1.6 million.
The Attorney General’s office has responded to the scrutiny by stating that the property transfer was conducted legally and appropriately, and that there is no implication of wrongdoing. However, the timing of the gift, coupled with the allegations regarding his previous legal work, has fueled public debate and calls for greater transparency.
The situation highlights the complexities of inheritance tax law and the potential for utilizing legal mechanisms to mitigate tax obligations, while also raising ethical concerns about the conduct of public officials and their adherence to professional standards. The ongoing investigation by the barristers’ watchdog will likely shed further light on the allegations surrounding Lord Hermer’s past legal practice and determine whether any disciplinary action is warranted.
The scrutiny surrounding this case underscores the importance of accountability and ethical conduct for those in positions of public trust
Attorney General Inheritance Tax War Crimes Lord Hermer Property Gift
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