IHTM30041 - Liability on potentially exempt transfers (PETs): persons liable

Liability for tax on chargeable potentially exempt transfers (PETs) (IHTM04057), apart from those on the ending of a qualifying interest in possession in settled property (IHTM30091), is specified in IHTA84/S199. The persons liable are

• The transferee (IHTM30051), IHTA84/S199 (1)(b)
• Any persons in whom the property is vested (IHTM30052), IHTA84/S199 (1)(c)
• Any beneficiary entitled to an interest in possession (IHTM30052), IHTA84/S199 (1)(c)
• Where property is settled by the transfer, any person for whose benefit any property or income from it is applied (IHTM30054), IHTA84/S199 (1)(d)
• The transferor is not liable but the personal representatives of the transferor (IHTM30043) are secondarily liable to the extent indicated in IHTA84/S204(8), IHTA84/S199(2) and S204(8).

IHTA84/S199(1) specifies that ‘disposition’ (IHTM04023) includes any omission to exercise a right treated as a disposition under IHTA84/S3(3). Despite this express reference to IHTA84/S3(3), IHTA84/S199(1) should be regarded as applying in similar situations, for example where a transfer of value is treated as made by a disposition under IHTA84/S263 (back-to-back policies (IHTM20087)).