IHTM30091 - Liability on settled property: persons liable

Liability on the ending of a qualifying interest in possession on death is governed by IHTA84/S200 and is dealt with in the section on transfers on death (IHTM30023).

Liability on the ending during lifetime of a qualifying interest in possession and for charges under the relevant property regime is governed by IHTA84/S201 as follows:

• The trustees (IHTM30101) are primarily liable, IHTA84/S201 (1)(a)

If the tax remains unpaid after the due date (IHTA84/S204 (6)(b)), the following persons are also liable to a limited extent (IHTM30072):

• Any person entitled (whether beneficially or not) to a qualifying interest in possession (IHTM16061) in the settled property, IHTA84/S201 (1)(b)
• Any person for whose benefit any of the settled property or income from it is applied at or after the time of the transfer, IHTA84/S201(1)(c)
• The settlor (IHTM30111) if they are alive at the time of the chargeable event and the trustees are for the time being resident outside the United Kingdom, IHTA84/S201(1)(d).