When someone has an interest in possession (IIP) (
IHTM16000) in settled property they are
treated as beneficially entitled (
IHTM04031) to the underlying settled
property, IHTA84/S49 (1).
This means that the property is treated as forming part of
their estate (
IHTM04029). When someone entitled to an
IIP in any settled property dies, tax (if due) is therefore charged
under IHTA84/S4 (1).
Where a person becomes beneficially entitled to an IIP on or
after 22 March 2006, S49 (1) only applies if the interest is an
immediate post-death interest, a disabled person’s interest
or a transitional serial interest (
IHTM16061).
