IHTM04351 | Reverter to settlor: introduction
From HM Revenue & Customs · Inheritance Tax Manual
Where a qualifying interest in possession (IIP) in settled property () comes to an end on a death () and on that event the property reverts to the settlor, provides that the property is left out of account in determining the value of the deceased’s estate.
Where a person becomes beneficially entitled to an IIP on or after 22 March 2006, S54 (1) applies only where the interest is a disabled person’s interest or a transitional serial interest ().
Similar relief is provided by where such an interest comes to an end during a person’s lifetime () by excluding the charge under .
The conditions for the relief are very clear and simple, but they must be fulfilled precisely. There are limitations () to the relief and some statutory restrictions. ()