I3.563 Debts to persons having property derived from the debtor
Under FA 1986, s 103(1), if, in determining the value of a person's estate immediately before his death (see Division I4.1), account would be taken, apart from that subsection, of a debt or incumbrance incurred or created after 17 March 19861 (ie it would be a deductible liability, being incurred for full consideration in money or money's worth), the debt or incumbrance is subject to abatement in proportion to the value of any consideration which (a) consisted of property derived from the deceased or (b) was given by a person who at any time had any such property2.
The rule is subject to various elaborations and qualifications, and is described in I4.151–I4.154. There can be double charges relief where a debt is not deductible from a deceased person's estate because of this rule, and there was a post
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