Commentary

I5.732 Spouse exemption and purchased reversionary interests

IHT, trusts and estates

I5.732 Spouse exemption and purchased reversionary interests

I5.732 Spouse exemption and purchased reversionary interests

Where a person acquired a reversionary interest in settled property for money or money's worth (or before 12 April 1978 an exempt body did so), the spouse exemption (or exempt body exemption) do not apply in relation to the settled property when it becomes the property of that person (or exempt body) on the termination of the interest on which the reversionary interest is expectant1.

Example

A settles a fund on himself before 22 March 2006 for a short period, remainder to his son G. A's wife, B, purchases G's reversion for its market value.

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