Who is liable to pay IHT on the surrender of a life interest?

I would be grateful for some advice.

I’m dealing with a trust where the life tenant of qualifying life interest trust (the trust was set up in 2000) has appointed his life interest to his son. This appointment was done in 2020. My understanding it that this is a CLT for inheritance tax and a form IHT and IHT100a will need to be completed. However, I’m unsure who will be liable for the tax. Is it the trustees or the original life tenant? I note there is a question on the IHT100a asking if the transferor is paying the tax. Does this apply in this situation?

Many thanks

Becky Williams
Garbutt and Elliott

This appears to be a duplicate of the query you raised on 8 November - is this deliberate?


Hi Maxine

When I submitted the initial query it went to the moderator to approve. There was a delay in it being approved but it was approved yesterday and therefore it’s been posted.

In the meantime I submitted the query again which didn’t go to the moderator.

This post can be ignored.