Commentary

I5.251 Absolute entitlement by the life tenant

IHT, trusts and estates

I5.251 Absolute entitlement by the life tenant

QIIPs and non-chargeable events

I5.251 Absolute entitlement by the life tenant

There is no IHT charge on the termination of an interest in possession where the person who had that interest (the life tenant) becomes beneficially entitled to the property in which it subsisted1. This does not apply where a close company has an interest in possession, which is treated as belonging to the participators2, and it becomes entitled to the capital. HMRC has, however, stated that they will apply s 53(2) where the company becomes entitled to or disposes of the interest3.

The reason for this exclusion from charge is that a person having a QIIP (often called the 'life tenant') is already treated for most purposes as if he were

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