In the absence of special provision, a double charge to tax could arise where a lifetime transfer which is or proves to be chargeable is also a gift subject to reservation. Examples of circumstances in which this would occur are to be found in ¶614-100 and ¶614-250 above. Relief is provided by the Inheritance Tax (Double Charges Relief) Regulations 1987, reg. 5.

More particularly, relief is available in the following circumstances:

(1)The deceased (A) has made a transfer which was chargeable when made, or has proved to be chargeable because of his death within seven years.

(2)The gift is subject to reservation, in terms of FA 1986, s. 102.


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