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HMRC internal manual

Inheritance Tax Manual

Meaning of estate for s.142: introduction

The normal meaning of an individual’s estate (IHTM04029) is modified for the purposes of IHTA84/S142 (1) in the following way so that it is extended to include any excluded property (IHTM04141) which would otherwise be taken out of the Inheritance Tax estate by IHTA84/S5 (1). Examples are

  • a non-purchased reversionary interest (IHTM04281)
  • certain British Government securities (IHTM04291) if the deceased was not ordinarily resident in the UK.

It is restricted by the excluding from the meaning of estate property to which the deceased was entitled under

  • IHTA84/S49 (1), settled property, (IHTM16000) and
  • FA86/S102, a gift with reservation (IHTM04072) which is still subject to a reservation at the date of death.

Subject to these modifications, the normal meaning of estate applies. Property that may be redirected by a variation includes

  • joint property (IHTM15081) passing by survivorship,
  • joint property passing under a special destination (IHTM15050) in Scotland, and
  • property devolving under legal rights (IHTM12221) in Scotland.