IHTM30083 | Liability on gifts with reservation (GWRs): persons liable when treated as part of death estate
From HM Revenue & Customs · Inheritance Tax Manual
Where the gift with reservation (GWR) is treated as part of the donor’s Inheritance Tax death estate () under , the liability provisions in apply. In their application to GWRs () within the persons liable are set out as follows:
persons liable for all charges
persons secondarily liable for property, which is mainly unsettled property
persons additionally liable for property comprised in a settlement immediately before the death.
| Property subject to charge | Persons liable | Authority |
|---|---|---|
| All charges whatever the property | Any person in whom the property is vested, whether beneficially or otherwise. Any beneficiary entitled to an interest in possession. (The transferee is not made expressly liable, not containing a provision corresponding to , but the transferee will normally come within .) | |
| Secondary liability for property | If the tax remains unpaid 12 months after the end of the month in which the donor dies, the personal representatives () are secondarily liable but only to the extent of assets mentioned in . | and |
| Persons additionally liable for settled property | The trustees. Any persons for whose benefit the settled property or income from it is applied. (Refer any case in which it appears that the liability may exceed the value of the funds.) | and |