»Ê¹ÚÌåÓýapp

‘Interest in possessionâ€� is a concept of general law. »Ê¹ÚÌåÓýappre is a statutory definition in Scotland (IHTM16071), but not in England and Wales or Northern Ireland.

A ‘qualifying interest in possession� is defined in IHTA84/S59 as an interest in possession to which an individual (or exceptionally, where IHTA84/S59 (2) applies, a company) is beneficially entitled.

Where the individual becomes beneficially entitled to the interest in possession, on or after 22 March 2006, it will only be a ‘qualifying interest in possession� if it is an immediate post-death interest, a disabled person’s interest or a transitional serial interest (IHTM16061).

But these definitions do not tell us what an interest in possession is.

»Ê¹ÚÌåÓýapp main authority for the definition of an interest in possession is the House of Lords case Pearson v IRC: a person has an interest in possession when they have ‘a present right of present enjoymentâ€� or an immediate right to the income or enjoyment of property (irrespective of whether the property produces income).

In contrast, the beneficiary (or object) under a non-interest in possession settlement has only the right to be considered by the trustees if and when they distribute any income or benefits.