I3.556 Double charges relief generally

IHT, trusts and estates

I3.556 Double charges relief generally

Double charges relief

I3.556 Double charges relief generally

The IHT (Double Charges Relief) Regulations 19871, made under the enabling power in FA 1986, s 104, prevent a person being charged IHT twice on the same property in various circumstances, where the event or transfer occurred after 17 March 1986.

They apply where the transferor has made a lifetime transfer which was (or turns out to be) a chargeable transfer and the property has subsequently been returned to them. This could be where, say, the original donee made a testamentary gift of the property back to the transferor or where it was a gift with reservation (see Division I3.4)2. Another scenario is where a transferor has died owing a debt which is wholly or partly non-deductible under FA 1986, s 103 (see I4.151–I4.154) and has made a lifetime transfer to the person to whom the debt was owed which was or turns out to be chargeable.

There is a further double charge relief provision in Charge to Income Tax by Reference to Enjoyment of Property Previously Owned Regulations 20053, reg 6. This deals with any case where someone has:


    •     entered into a lifetime IHT-avoidance settled debt scheme which falls within the pre-owned assets income tax charge4

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