I5.281 Termination during lifetime of life tenant
If a qualifying interest in possession (QIIP) comes to an end during the life of an interest beneficiary (the life tenant) and none of the exemptions from charge described or referred to in I5.251 apply, then there is a chargeable transfer treated as made by the life tenant.
The value on which IHT is charged is the value of the settled property that was subject to the interest (see I5.228).
Calculation of IHT
The general rules for calculating IHT on lifetime transfers of value therefore apply.
The transfer may be a chargeable lifetime transfer (CLT) because, for example, the remainder interest passes to discretionary trusts on the termination of the QIIP. In this case the rules for calculating the IHT described in I3.521 onwards are applicable.
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:47