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Home / Simons-Taxes /IHT, trusts and estates /Part I3 Lifetime transfers /Division I3.7 Pre-owned assets tax (POAT) /POAT—further rules / I3.744 POAT—double taxation
Commentary

I3.744 POAT—double taxation

IHT, trusts and estates

It is possible that a charge to POAT could cause a double charge to tax in some circumstances. A taxpayer could be chargeable under two heads of charge, as a POAT charge and a benefit in kind or a charge to income tax and a charge to inheritance tax. The latter is a particular problem where the unwinding of an IHT scheme is involved1.

Double charge to POAT

Where in any year of assessment a taxpayer has a POAT charge on land or a chattel, and also has a charge on intangible property which derives its value in whole or part from the same land or chattel, they are charged only under the provision which produces the higher chargeable amount2.

This provides a measure of relief where, for example, an individual might otherwise face a double charge on their occupation of land owned by a company

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