IHTM14546 - Lifetime transfers: the charge to tax: grossing: settled property
You do not gross up when tax is charged under IHTA84/S52 (1) on the lifetime termination of an interest in possession (IIP) in settled property. This is so even if:
- tax is immediately payable because the deemed transfer is not a Potentially Exempt Transfer (PET),
- tax is paid by the deemed transferor (the person whose IIP has come to an end).
This is because under IHTA84/S52 (1) tax is charged 바카라 사이트˜as if the value transferred had been equal to the value of the property in which his (the transferor바카라 사이트™s) interest subsisted.바카라 사이트™
Consequently, the loss to the estate (IHTM04054) concept does not apply, and so the value of the transferor바카라 사이트™s estate immediately after the transfer is not relevant.
The exception
However where the IHTA84/S52 (1) charge on the termination of the IIP is the result of a partition of the settled fund
- if it is a term of the partition agreement that the tax shall be paid out of the property remaining in settlement
- the claim extends to the property required to meet the tax.
Refer to Technical to clarify the extent of the claim.