CG36457 - Life interests and interests in possession: Death of person with interest in possession: reversion to settlor
TCGA92/S73 (1)(b)
In the unusual case where the property reverts to the settlor on the death of the person entitled to the interest if IHTA84/S54 applies no Inheritance Tax is chargeable. »Ê¹ÚÌåÓýappre is, therefore, no reason for exempting permanently any gain accrued up to that date but it is not chargeable to Capital Gains Tax on that occasion. »Ê¹ÚÌåÓýapp deemed disposal and re-acquisition is on a no gain/no loss basis.
From 22 March 2006 this only applies to certain kinds of interest in possession, see CG36525.