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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Absolute entitlement: termination of life interest

It is very common for a deed to give a person a life interest, with the property going absolutely to one or more individuals, or to the members of a class of persons, on the death of that person. This gift over (`remainder’) may be absolute, or it may be contingent on an individual or member of the class being alive on a particular date. If it is absolute and a particular individual fails to survive the life tenant, the property goes to that individual’s heirs. If the gift is contingent, and one or more beneficiaries fail to fulfil the contingency, their interest fails and the other beneficiaries get a bigger share, or it goes to a different beneficiary.