Making sense of the asset rules

inheritance

The pre-owned asset rules that came into affect in April mean people may have to pay tax on land, chattels and intangible property if they continue to benefit from them after disposal

On 6 April 2005 the pre-owned assets rules, introduced by the Finance Act 2004, came into effect for the tax year 2005-2006 and subsequent years. The rules apply to individuals who continue to receive benefits from certain types of property they once owned but have since disposed of. The rules, which catch transactions since 17 March 1986, were introduced to counter various successful schemes that many individuals used to protect their estates from inheritance tax (IHT) by imposing an income tax charge on any ongoing benefit received. Land, chattels and intangible property are all affected...