Commentary

I3.738A Equity release exemption

IHT, trusts and estates

I3.738A Equity release exemption

I3.738A Equity release exemption

Concerns were expressed in 2004 that equity release schemes involving part disposals would not qualify as excluded transactions. The government recognised some of the concerns, but following the enactment of FA 2004 it had no power to extend the scope of the definitions of 'excluded transaction' by regulations. Instead of seeking amendments to the primary legislation, the Treasury used its power to confer further exemptions by regulations1. The result is a new exemption which deviates in its approach from the schemes of excluded transactions and exemptions contained in FA 2004, Sch 15.

Under this new exemption, the pre-owned assets charging provisions on land and chattels2 do not apply to a person in relation to a disposal of part of an interest in any property if the disposal was by a transaction made at arm's length with a person not connected with him3. This exempts disposals of part of an interest in any property by a transaction made at arm's length with a

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