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HMRC internal manual

Inheritance Tax Manual

Special rules: settled property - sales and mortgages of reversionary interests

There is a further relief, which is included only for completeness as you are unlikely to see it in practice.  It relates to the tax charge:

  • on the cesser of an interest in possession (IHTM16061)
  • where a reversionary interest in the settled property (IHTM16231) was sold or mortgaged before 27 March 1974.

There is a tax relief (IHTM16232) in these circumstances.

The relief is applied in the same way as that afforded by IHTA84/S40(2)(d) FA 1969 for Estate Duty. Any sum repayable under this practice would not carry interest.