IHTM30052 - Definition and extent of liability (PETs): persons liable under IHTA84/S199 (1)(c)

So far as the IHT on the chargeable lifetime transfer is attributable to the value of any property, IHTA84/S199 (1)(c) imposes liability on

• any persons in whom the property is vested

• whether beneficially or otherwise
• at any time after the transfer

or

• any person who

• is beneficially entitled to an interest in possession
• at any time after the transfer.

References to any property include any property directly or indirectly representing it (IHTA84/S199 (5)).

Because IHTA84/S199 (1)(b) also makes beneficiaries liable, IHTA84/S199(1)(c) most commonly applies to persons, such as trustees, who hold property in a fiduciary capacity. Other persons liable under IHTA84S199 (1)(c) include purchasers ( IHTM30053).

Under IHTA84/S199 (4) persons in whom property is vested include

• broadly an executor de son tort or constructive trustee (or, in Scotland, a vitious intromitter)

and

• any person to whom management of the property is entrusted on behalf of a person not of full legal capacity.