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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Structure of the charge: how meaning of estate is restricted

Property is not part of the transferor’s estate where

  • it is uncertain which of two (or more) persons survived the other(s), (IHTM12191) IHTA84/S4 (2). Generally, the younger person is deemed to survived the elder, so the effect is that the estate immediately before death of the younger person(s) does not include property that accrues as a consequence of the deemed earlier death of the elder person. This rule is subject to exceptions in Scots law under the Succession (Scotland) Act 1964 (IHTM12193),
  • the transferor is entitled to property as a corporation sole, IHTA84/S271. Such property is not property to which that person is beneficially entitled (except for the purposes of IHTA84/S59). An example is property held by a bishop by virtue of his office. (IHTA84/S59 defines qualifying interest in possession for the purposes of settlements without interests in possession.)
  • a person acquires a reversionary interest (IHTM16000) at a time when they had a prior interest in the settled property, IHTA84/S55 (1). The reversionary interest is not part of the estate, although there may be a charge on the lifetime transfer (IHTM04282)
  • the legislation specifically excludes (IHTM04251) the property from charge.