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HMRC internal manual

Inheritance Tax Manual

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

or
 

  • 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
 

  • beneficiaries

and
 

  • 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)

and
 

  • any person to whom management of the property is entrusted on behalf of a person not of full legal capacity.