SVM111070 - IHT Business Property Relief: Deemed ownership under section 108
Section 108 IHTA 1984 contains two deemed ownership
provisions which apply for the purposes of the general rule in section 106 IHTA
1984 and the replacement property provisions in section 107 IHTA 1984 (section 108
IHTA 1984 does not apply for the purposes of sections 109 and 109A IHTA 1984).
Section 108(a) IHTA 1984 provides that where the transferor became entitled to
property on the death of another person, the transferor is treated as having
owned it from the date of the other person's death. Section 91 IHTA 1984 brings
business property included in an unadministered residuary estate within this
provision.
Section 108(b) IHTA 1984 provides that where the person on whose death the
transferor became entitled to the property was their spouse or civil partner,
the transferor is deemed for the purposes of sections 106 and 107 IHTA 1984 to
have owned the property for any period during which the spouse or civil partner
owned it (irrespective of how long they had been married or in a civil
partnership).
Additional Guidance: SVM150000