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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Definition and extent of liability (PETs): persons liable under IHTA84/S199 (1)(c)

So far as the IHT on the chargeable lifetime transfer is attributable to the value of any property, IHTA84/S199 (1)(c) imposes liability on

  • any persons in whom the property is vested

    • whether beneficially or otherwise
    • at any time after the transfer


  • any person who

    • is beneficially entitled to an interest in possession
    • at any time after the transfer.

References to any property include any property directly or indirectly representing it (IHTA84/S199 (5)).

Because IHTA84/S199 (1)(b) also makes beneficiaries liable, IHTA84/S199(1)(c) most commonly applies to persons, such as trustees, who hold property in a fiduciary capacity. Other persons liable under IHTA84S199 (1)(c) include purchasers (IHTM30053).

Under 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.