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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.7 Reversionary interests and powers of appointment /Status of exemptions within a purchased reversion / I5.734 Reversion to settlor or settlor's spouse or civil partner
Commentary

I5.734 Reversion to settlor or settlor's spouse or civil partner

IHT, trusts and estates

As described in I5.252, there is relief from the IHT charge on settled property on the termination of a qualifying interest in possession (QIIP — see I5.201) in it if on the same occasion the property reverts to the settlor1, or his spouse or civil partner (including the settlor's widow or widower or surviving civil partner if the occasion is within two years of the settlor's death) becomes beneficially entitled to it2.

As also mentioned in I5.252, this relief is excluded where any reversionary interest in the settled property has been acquired by the settlor or his spouse for a consideration in money or money's worth3.

Thus if A settles property on trust for B for life before 22 March 2006, with remainder to C absolutely, and either A or his wife D purchase

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