The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Where a donor has made a gift of property and continues to use or benefit (or may benefit) from that property in some way, he may have made a gift with reservation of benefit for the purposes of inheritance tax (IHT).
However, this will not be the case where:
In these cases, the donor may fall within the special annual charge to income tax that is levied on pre-owned assets (POA). These are assets he previously owned or assets whose acquisition he financed since 17 March 1986. The assets that are specifically targeted by the POA regime are land (including buildings), chattels and certain intangible property.
For an explanation of the rules on gifts with reservation of property, see the Gifts with reservation ― overview guidance note.
The charge to income tax on POA applies to UK resident persons in respect of property situated in the UK. This means that the charge does not apply to land, chattels or intangibles situated:
FA 2004, Sch 15, para 12(1), (2)
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