I4.462 Legal rights generally
For an explanation of Legal Rights in Scotland, see Walker's Principles of Scottish Private Law (3rd edn) Vol IV, Ch 7.2.
FA 1975, as originally enacted, contained no special provisions for dealing with legal rights. This produced a Revenue practice of treating legal rights claims as shares of residue and, whilst this treatment complicated the nature of legal rights claims, it did have the effect of ensuring that the claims of children or their issue in their place did not become fortuitously free of CTT.
Under the current legislation, legal rights, if claimed, are treated as a specific gift bearing its own IHT and the claim is valued as