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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Life interests: extension to non-life interests: clawback cases

ESC/D43

Where the property continues to be settled property on the death of the person with aninterest in possession which is not a life interest, the concession does not apply todeemed disposals in respect of which a clawback charge arises under TCGA92/S67 orTCGA92/S74. See CG36510.

Where the property continues to be settled property on the death of the person with aninterest in possession which is not a life interest, the concession does apply, withmodification, to a subsequent actual disposal of any asset in respect of which hold-overrelief was claimed on the transfer to the trustees. In this case the property is deemed tohave been disposed of on the death of the beneficiary but at a value equal to probatevalue less the held-over gain.

Where the property ceases to be settled property on the death of the person with aninterest in possession which is not a life interest, if the benefit of the concession isclaimed, Sections 67 and 74 shall apply if they would have applied if the interest hadbeen a life interest.