Commentary

I8.243A Where there is a beneficiary-taxed interest in possession

IHT, trusts and estates

I8.243A Where there is a beneficiary-taxed interest in possession

I8.243A Where there is a beneficiary-taxed interest in possession

Settled property subject to a beneficiary-taxed interest in possession to which an individual is beneficially entitled is part of that individual's estate1. Accordingly, such settled property can fall within the related property rules, both by being valued taking into account other property which is related to it, such as property owned absolutely by the spouse or civil partner of a person with a beneficiary-taxed interest in possession in the settled property, and by being itself related to such other property when that other property suffers an IHT charge. However, HMRC state that the related property rules do not apply where a beneficiary-taxed interest in possession in settled property comes to an end during the life of the person entitled to it2.

For this reason, and for

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