Income tax and pre-owned assets - news
Latest news
02 November 2007
The Income Tax (Benefits Received by Former Owner of Property) (Election for Inheritance Tax Treatment) Regulations 2007, together with an Explanatory Memorandum were laid before Parliament on 22 October 2007 and come into force on 14 November 2007. The new form IHT500 and guidance notes IHT501 will be available on the website from that date.
24 October 2007
Income tax and pre-owned assets guidance
This guidance has been updated at sections 3.3, 3.4 and 3.5
13 June 2007
Clause 65 Finance Bill 2007 - Draft
late election guidance for comment
We have produced draft guidance on the circumstances in which we may accept
late elections under this provision, and would welcome comments on this
by 30 June 2007.
18 April 2007
The prescribed rate increased from 5% to 6.25% on 6 April 2007. The prescribed rate is the official rate of interest used to calculate the chargeable amount for income tax, at the valuation date, where the benefit arises from either chattels or intangible property. The official rate of interest has the meaning given in section 181 of the Income Tax (Earnings and Pensions) Act 2003.
29 January 2007
The pre owned asset detailed guidance has been amended to update our guidance on Land – reversionary lease scheme.
30 May 2006
The pre owned asset detailed guidance has been amended. This includes updated guidance on the treatment of loans and on house sharing arrangements.
Finance Bill 2006
Legislation introduced in the Finance Bill will bring within the charge property gifted by an individual, which continued to be enjoyed by him as a beneficiary under the terms of reverter to settlor trusts. Further details can be found in the detailed guidance at Appendix 1
20 December 2005
The Inheritance Tax (Double Charges Relief) Regulations 2005, together with an Explanatory Memorandum were laid before Parliament on 14 December 2005 and come into force on 4 January 2006. Further information can be found by visiting the POA Guidance 4 page.
21 July 2005
Pre-Owned Asset Regulations - Relief
from Double Charges (PDF 78K)
In her statement today the Paymaster General, Dawn Primarolo, announced
forthcoming regulations to provide relief from possible double inheritance
tax (IHT) charges in situations caught by the pre-owned assets provisions
at Schedule 15 Finance Act 2004.
09 June 2005
The guidance on liability has been amended. The questions relating to Land and Chattels have been corrected and the effects of domicile and residence have been clarified.
04 April 2005
The pre-owned asset guidance has been amended. The section on Business Trusts/partnership policies has been clarified.
16 March 2005
Draft regulations (The Charge to Income Tax by Reference to Enjoyment of Property Previously Owned Regulations 2005 have been laid before Parliament. The regulations:
(a) set rates of return and valuation dates,
(b) require land and chattels to be valued five-yearly
(c) exempt part sales on “equity release” terms and
(d) relieve a potential double inheritance tax charge.
