Commentary

I3.702 Pre-owned assets—the charge to tax

IHT, trusts and estates

I3.702 Pre-owned assets—the charge to tax

I3.702 Pre-owned assets—the charge to tax

FA 2004, s 84, Sch 15 imposes what is generally regarded as a tax on capital, levied as income tax charges on individuals, based on:

  1.  

    •     the benefit they enjoy from the occupation of land or the possession or use of chattels which they once owned, or which they assisted other persons to acquire, and

  2.  

    •     their deemed power to enjoy intangible property in certain settlor-interested settlements

The charge is an income tax charge, operating alongside the inheritance tax gift with reservation of benefit rules16; it is not a charge to inheritance tax.

The pre-owned assets

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