Definition and extent of liability (PETs): persons excluded
So far as the Inheritance Tax 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 who hold property in a fiduciary capacity, such as trustees. 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.