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HMRC internal manual

Inheritance Tax Manual

Liability on gifts with reservation (GWRs): persons liable when treated as part of death estate

Where the gift with reservation (GWR) is treated as part of the donor’s Inheritance Tax death estate (IHTM30021) under FA 1986 IHTA84/S102 (3), the liability provisions in IHTA84/S200 apply. In their application to GWRs (IHTM04071) within IHTA84/S102 (3) the persons liable are set out as follows:

  • persons liable for all IHTA84/S102 (3) charges
  • persons secondarily liable for IHTA84S200 (1)(a) property, which is mainly unsettled property
  • persons additionally liable for property comprised in a settlement immediately before the death.


### Property subject to charge ### Persons liable ### Authority
All IHTA84/S102 (3) charges whatever the property Any person in whom the property is vested, whether beneficially or otherwise.  

Any beneficiary entitled to an interest in possession.

(The transferee is not made expressly liable, IHTA84/S200 (1) not containing a provision corresponding to IHTA84/S199 (1)(b), but the transferee will normally come within IHTA84/S200 (1)(c).) IHTA84/S200 (1)(c)


IHTA84/S200 (1)(c)      
  Secondary liability for IHTA84/S200 (1)(a) property If the tax remains unpaid 12 months after the end of the month in which the donor dies, the personal representatives (IHTM05012) are secondarily liable but only to the extent of assets mentioned in IHTA84/S204 (1). IHTA84/S200 (1)(a) and IHTA84/S204 (9)
  Persons additionally liable for settled property The trustees.  

Any persons for whose benefit the settled property or income from it is applied.

Refer any case in which it appears that the liability may exceed the value of the funds. IHTA84/S200 (1)(b)
IHTA84/S200 (1)(d)