Inheritance Tax Manual

IHTM16123 - Reverter to settlor: Double Charges Relief

If the settlor dies within 7 years of the transfer which created the interest in possession, there is a failed PET (IHTM04057) and the transfer becomes taxable on the settlor바카라 사이트™s death.

But if the life tenant dies before the settlor, during that 7-year period, and the trust property reverts to the settlor, it will again be taxable as part of his death estate. So the same property is subject to tax twice on the settlor바카라 사이트™s death.

In these circumstances, see the Double Charges Relief guidance at IHTM14691.

Where the transfer creating the interest in possession is made on or after 22 March 2006, this will only be relevant if:

• the interest in possession is a disabled person바카라 사이트™s interest, and
• the settled property reverts to the settlor absolutely or on trusts that also meet the conditions of a disabled person바카라 사이트™s interest (IHTM42805).