Commentary

I3.730 The pre-owned assets charge on intangible property

IHT, trusts and estates

I3.730 The pre-owned assets charge on intangible property

Intangible property

I3.730 The pre-owned assets charge on intangible property

The pre-owned assets charge on intangible property is in completely different terms from the charges on land and chattels. One should not be misled by HMRC's assertion that the conditions are 'slightly different for intangible property'1.

In order for a charge to income tax to arise with regard to intangible property, the following essential elements must be present:

  1.  

    (a)     a person has settled any property (not necessarily intangible property)

  2.  

    (b)     the terms of the settlement, as they affect any property comprised in the settlement, are such that any income arising from the property would be treated by virtue of ITTOIA 2005, s 624 as income of a person ('the chargeable person') who is for the purposes of ITTOIA 2005, ss 619–648 (Pt 5, Ch 5) the settlor2

  3.  

    (c)     such income would be so treated even if ITTOIA 2005, s 625(1) did not include any reference to the spouse of the settlor3, and

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