Commentary

I8.222 Leases for life etc

IHT, trusts and estates

I8.222 Leases for life etc

I8.222 Leases for life etc

A lease of property for life or lives, 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, is treated as a settlement unless the lease was granted for full consideration in money or money's worth; and 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. Therefore, if the rent can be increased on the death of the lessee, the lease will be treated as terminable on his death. HMRC do not regard a statutory tenancy as a lease for life for the purposes of this provision,

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