Commentary

I11.604 Dispositions of property subject to an Inland Revenue charge

IHT, trusts and estates

I11.604 Dispositions of property subject to an Inland Revenue charge

I11.604 Dispositions of property subject to an Inland Revenue charge

The general rules are that a purchaser and a person deriving title from him are not liable as persons in whom property is vested unless the property is subject to an Inland Revenue charge, and that a disposition of property subject to an Inland Revenue charge takes effect subject to that charge1, but there are significant exceptions for the protection of purchasers.

(1) In England or Wales2, a purchaser of a legal estate in land takes the estate free from the charge unless it was registered as a land charge (in the case of unregistered land) or, in the case of registered land, unless it was protected by notice on the register at the time of the disposition3. The time of the disposition is the time of completion, except in relation to a disposition of registered land which is required to be completed by registration, where it is the time of registration of the disposition4.

'Purchaser' means a purchaser in good faith for consideration in money or money's worth other than a nominal consideration and includes a lessee or a mortgagee or other person acquiring an interest for such consideration5. The provisions of Land Charges Act 1972 and Land Registration Act 2002 which make it clear that in general charges which should be registered, but which have not been, are void against a purchaser even if he knows about them, do not apply to the Inland Revenue

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