An election procedure allows a taxpayer to opt out of the POAT charge on any particular property and into the gifts with reservation regime instead. However, there is no general relief for any taxes incurred in dismantling any arrangements previously entered into.
The election
A taxpayer subject to a charge by reference to their enjoyment of any land or a chattel1 or by reference to intangible property2 can elect that FA 2004, Sch 15 shall not apply3.
Instead, the election treats the property as though it were subject to a reservation. There is no requirement for there to have been a gift; an election simply invokes the gifts with reservation rules as though there had been a gift. It mimics the effect of the gift with reservation provisions; therefore there is no base cost uplift on death.
Where such an election is made in respect of land or a chattel, then as long as the taxpayer continues to enjoy the relevant property or any property which may be substituted for it:
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Web page updated on 17 Mar 2025 17:46