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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Rights of residence: action in Compliance Group

:
The leading case on rights of residence for IHT is IRC v Lloyds Private Banking [1998] STC 559 (see next page)

Most situations that arise in practice can be grouped under five headings: 

  * The settlor (or testator) owns the entire property and gives it to trustees for a single beneficiary ([IHTM16135](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm16135)) on trust for life (or any shorter period) 
  * The settlor (or testator) owns the entire property and gives it to trustees for more (or potentially more) than one beneficiary ([IHTM16136](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm16136))
  * The testator is a joint owner ([IHTM16139](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm16139)) and by will provides for the other joint owner to enjoy occupation of the whole undisturbed
  * The testator is a joint owner and by will leaves his or her share to a third party 
  * The testator is a joint owner and leaves his or her half-share to trustees on non- interest in possession trusts, the other joint owner remaining in occupation as before 

You should refer any other situations involving a right of residence to Technical Group.