Commentary

I5.116 Lease for life as settlement

IHT, trusts and estates

I5.116 Lease for life as settlement

I5.116 Lease for life as settlement

A lease of property which is for life, or for a period ascertainable only by reference to a death (or which is terminable on, or at a date ascertainable only by reference to, a death) shall be treated as a settlement and the property as settled property. This is unless the lease was granted for full consideration in money or money's worth.

Where a lease not granted as a lease at a rack rent is at any time to become a lease at an increased rent it shall be treated as terminable at that time1.

This provision is designed

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