IHT planning using the POA de minimis rule?

[Bill2]

Hi IHT Group
A POA is not taxable as the donor’s income if it is value is assessed as less than £5000, the de minimis rule.

This being the market rental for a POA which is property
This being open market value multiplied by the official interest rate (currently 4%) for a POA which is a chattel.

Could the POA £5000 de minimis rule, create an opportunity for IHT tax planning?

The Donor could use a “scheme” to create a POA situation, in which the open market benefit is calculated as less than £5000. The POA would leave the donors estate after 7 years have passed with respect to IHT.

Possible POA de minimis IHT planning scenario, the father sells his house, gifts the house proceeds to his son. The son uses part of the proceeds to purchase a small flat for his father to live in on his own. The open market rental value of the flat is £4800 per annum. Side stepping the IHT GWR rules and the POA income tax liability.

Thanks for feedback
Iain