HMRC internal manual

Inheritance Tax Manual

Other assets due to the deceased - Interest in expectancy

An interest in expectancy, sometimes called a reversionary interest, (IHTM16231) is generally excluded property (IHTM04281). But taxpayers still need to include an estimated value for the property in which the deceased had the interest in expectancy in Box 76 of the IHT400. The name and date of death (or date of settlement) of the person who set up the trust and the name and age of the person who is currently receiving the benefit should be included on form IHT418 at boxes 19 and 20. You should refer the file to Technical for advice if the taxpayers offer to pay tax on the interest in expectancy.