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I3.556 Double charges relief generally

The IHT (Double Charges Relief) Regulations 1987¹, made under the enabling power in FA 1986, s 104, prevent a person being charged IHT twice on the same property in various circumstances, where the event or transfer occurred after 17 March 1986.

They apply where the transferor has made a lifetime transfer which was (or turns out to be) a chargeable transfer and the property has subsequently been returned to them. This could be where, say, the original donee made a testamentary gift of the property back to the transferor or where it was a gift with reservation (see Division I3.4)². Another scenario is where a transferor has died owing a debt which is wholly or partly non-deductible under FA 1986, s 103 (see I4.151–I4.154) and has made a lifetime transfer to the person to whom the debt was owed which was or turns out to be chargeable.

There is a further double charge relief provision in Charge to Income Tax by Reference to Enjoyment of Property Previously