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Home / Simons-Taxes /IHT, trusts and estates /Part I3 Lifetime transfers /Division I3.7 Pre-owned assets tax (POAT) /POAT—land and chattels / I3.724 POAT—relationship between disposal and contribution conditions
Commentary

I3.724 POAT—relationship between disposal and contribution conditions

IHT, trusts and estates

For a POAT charge to apply on land or chattels, either the disposal condition or the contribution condition must be met1. It can be important to understand which of the conditions is met as excluded transactions apply differently to the contribution and disposal conditions — see I3.734.

Sometimes, both conditions may be met, for example, where shares are gifted which are later sold and reinvested in the relevant land

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