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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Settled property: interest for another person's life

An interest for another person’s life (known as a pur autre vie interest) is an example of an interest in possession (IIP) (IHTM16061). It is not a common case.


Income of a fund - ‘to Sally during the life of Samuel, remainders to Agnes’.

It is an interest for the life of another person, ‘pur autre vie’.

Sally has the interest in possession and on her death before Samuel there is a normal claim under IHTA84/S4 with IHTA84/S49 (1).

If Samuel dies in Sally’s lifetime her interest ceases at that time and a claim arises under IHTA84/S52 (1). This is a PET (IHTM04057) as Agnes is an individual.

If Sally became beneficially entitled to her interest in possession on or after 22 March 2006, a claim under IHTA84/S4 with S49(1) or S52(1) will only arise if the interest is:

  • An immediate post-death interest,
  • A disabled person’s interest or
  • A transitional serial interest (IHTM16061).

As Samuel does not have an interest in possession the fund is not taxable on his death.

As he has no power to bring Sally’s interest to an end there are no lifetime IHT implications from his point of view.