IHTM15012 - Joint property: joint property and inheritance tax

»Ê¹ÚÌåÓýapp Inheritance Tax Act contains

  • no provisions that apply specifically or exclusively to lifetime charges (IHTM15060) on joint property (IHTM15011): and
  • only one provision, IHTA84/S171 (2), that specifically relates to the charge on death. And that provision is required only to exclude the operation of IHTA84/S171 (1), (IHTM04046).

So, any charge to tax on joint property has to be based on applying the ordinary provisions of the legislation to the beneficial entitlements (IHTM15011). »Ê¹ÚÌåÓýapp main provisions that apply are:

  • IHTA84/S3, which defines ‘transfer of valueâ€� (IHTM04024)
  • IHTA84/S4, for the charge on death (IHTM04041)
  • IHTA84/S5, which defines ‘estateâ€� (IHTM04029) and
  • IHTA84/S272 under which ‘propertyâ€� (IHTM04030) includes rights and interests of every description

Under these provision’s a person’s beneficial entitlement to joint property forms part of their estate for the purposes of the Inheritance Tax charge both on transfers on death and lifetime transfers.

In addition, FA 1986/S102 and FA 1999/S104 govern any gift with reservation (IHTM15061) charge on joint property.