So long as any tax or interest in respect of the value transferred by a chargeable transfer remains unpaid, a charge for the amount unpaid is imposed in favour of HMRC on the property in question and, in the case of tax attributable to settled property, on any property comprised in the settlement (IHTA 1984, s. 237). The charge takes effect subject to any prior incumbrance which is allowable as a deduction in valuing the property (s. 237(5)). It need not be registered in order to take effect: Executors of Howarth (dec'd) v IR Commrs(1997) Sp C 119.

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