Definition and extent of liability: persons liable under IHTA84/S200 (1)(c)
So far as the IHT on the transfer on death is attributable to the value of any property, IHTA84/S200 (1)(c) imposes liability on
any person in whom the property is vested
- whether beneficially or otherwise
- at any time after the death
any person who
- is beneficially entitled to an interest in possession in the property
- at any time after the death.
Reference to any property includes any property directly or indirectly representing it (IHTA84/S200 (4).
The persons IHTA84/S200 (1)(c) most commonly applies to are
- persons, such as trustees, who held property in a fiduciary capacity.
Other persons liable under IHTA84/S200 (1)(c) include purchasers, subject to limitation (IHTM30036).
It is considered that, in Scotland, property passing under a contractual survivorship destination (IHTM15090) on a death comes under IHTA84/S200 (1)(c), and that liability for tax on any such property lies with the survivor.
Under IHTA84/S200 (4), applying IHTA84/S199 (4), persons in whom property is vested include
- broadly, an executor de son tort or constructive trustee (or, in Scotland, a vitious intromitter)
- any person to whom management of the property is entrusted on behalf of a person not of full legal capacity.