Lexicon

Term of the day

pre-owned assets

There are provisions aimed at countering avoidance of the inheritance tax (IHT) rules for 'gifts with reservation'; i.e. (broadly) where the former owner continues to enjoy the benefits of ownership of an asset. In certain circumstances, where these IHT rules do not apply, the pre-owned assets rules impose an income tax charge on the former owner for every year in which the benefit of the assets is enjoyed. [1]