Interest in possession meaning

Assistance with the checklist This summary checklist and timeline presuppose that the trustee in bankruptcy (trustee) is ready to file an application to the court for an order for possession and sale of a property in which the bankrupt previously held an interest that now vests in the trustee under section 306 of the Insolvency Act 1986 (IA 1986). It also assumes the trustee has written to the owners to try to realise their interest without issuing court proceedings, and that it is the appropriate moment to make the application. If the property is of a type within IA 1986, s 283A(1), then unless the trustee takes certain steps before the third anniversary of the bankruptcy order—among them applying to court for a possession and sale order—the trustee’s interest in that property will automatically re-vest in the bankrupt. Accordingly, the trustee must take timely steps in relation to the property...

Appointment of Receivers The Crown Court may, on the prosecutor’s application, appoint a receiver over a defendant’s realisable property where a confiscation order remains unsatisfied and is not under appeal. The court may grant the receiver the following powers in respect of that realisable property: power to take possession of the property power to manage or otherwise deal with the property, after hearing representations from those holding it power to realise the property, in such manner as the court directs, after hearing representations from those holding it power to commence, continue or defend any legal proceedings concerning the property Where the defendant’s realisable interest in the property is in dispute, it is not required that the property be shown to be the defendant’s proven realisable property (see eg Re Smith)...

See Q&A: At what point does income from a trust become accumulated and capital in nature, so that payments of the same funds are capital and the beneficiary cannot claim income tax back at their marginal rate? For present purposes, assume the trust is discretionary and that nobody has an interest in possession in its income. Accumulation denotes the transformation of income into capital; once that has happened, any later payments out of those same sums are treated as capital, and the beneficiary cannot reclaim income tax at their marginal rate. For income to be properly accumulated, certain requirements must be met: there must exist a power or trust to accumulate, granted by the trust instrument or under the Trustee Act 1925 (TA 1925), or possibly arising at common law—see Lombe v Stoughton (1841) 12 Sim 304 (not reported by LexisNexis®UK) There is also statutory authority to accumulate income from funds held for a beneficiary who is a minor, to the extent...

In this issue: Enforcing security and property insolvency Forfeiture Easements and covenants Disputes and remedies Residential tenancies No Weekly Highlights on 24 April 2025 Additional Property Disputes updates LexTalk®Property Disputes: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Enforcing security and property insolvency The treatment of principal secured debt under a mental health crisis moratorium (Seculink Ltd v Forbes) In Seculink Ltd v Forbes [2025] EWHC 524 (Ch), the High Court explained how the principal amount of a secured debt is dealt with during a mental health crisis moratorium (MHCM) under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, SI 2020/1311. The court confirmed that the principal of a secured debt does not constitute a ‘qualifying debt’ for the purposes of the Regulations, meaning secured creditors may enforce recovery of...

In this issue: Probate Trusts Court of Protection UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Budgets and Finance Bills Pensions, insurance and tax efficient investments Scotland, Wales and Northern Ireland International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Probate HMCTS Probate application processing times continued to improve to the end of 2024 HM Courts and Tribunals Service (HMCTS) has released figures showing that probate application processing times kept improving across the year to December 2024. In December 2024, the average wait was a little over four weeks, a striking turnaround from the end of 2023, when applicants typically faced 12 weeks for their applications to be dealt with. Digital submissions, which represent...

Trustees and personal representatives can, in fact, carry on a trade. For example, where a self-employed trader dies, the personal representative may keep the business running until it is wound down or sold. In the same way, trustees or interest in possession beneficiaries might be trading and could qualify for reliefs such as roll-over relief or business asset disposal relief. The broad tax rules governing trading apply to all traders alike, whether they are individuals, trustees, or personal representatives. This Practice Note sets out those principles below. Is there a trade? The key issue to examine is whether there is a trade. At times this will be clear, for instance when personal representatives step in to continue the deceased’s business; however, in other situations even a solitary transaction can amount to a trade. As an illustration, trustees who buy a property to renovate may, depending on the circumstances, be regarded as operating a property development business. If so, any gain on the later sale would fall within income...

General principles The trustees are, for tax purposes, regarded collectively as a single person, distinct from the individuals who serve as trustees from time to time. An interest in possession (IIP) means a beneficiary has an immediate right to the trust income as it arises. That income belongs to the beneficiary, and the trustees lack authority to retain it, save to meet proper expenses. Where trust income does not fall within the definition of accumulated or discretionary income in section 480 of the Income Tax Act 2007 (ITA 2007), it is treated as the income of ‘other persons’ and taxed at the basic and dividend rates. Ultimately, the income is assessed on the beneficiary at their personal rates, irrespective of when, and even whether, it is actually paid to them. Nevertheless, the trustees are liable to income tax on income arising from trust property because they are the legal owners of that property and thus the persons who receive the income. The way IIP and discretionary trusts are differentiated...

Variation of Will or intestacy after death—Q&As An instrument of variation can be used to alter how a deceased person’s estate is distributed under a Will or on intestacy. It is commonly executed by deed. To secure effectiveness—typically to obtain favourable inheritance tax (IHT) and capital gains tax (CGT) treatment under section 142 of the Inheritance Tax Act 1984 (IHTA 1984) and section 62(6) of the Taxation of Chargeable Gains Act 1992 (TCGA 1992)—certain formalities must be met. These include that the deed is in writing, contains the requisite statement applying the statutory provisions, is not made for any extraneous consideration, and is signed by all relevant parties, including the deceased’s personal representatives (PRs) where additional tax would otherwise arise. For guidance on deeds of variation, see Practice Note: Variation of Will or intestacy after death. See also Practice Note: Post-death rearrangements. Compliance with these requirements will usually deliver the intended IHT and CGT position. The formalities for execution of variation should be followed accordingly. Precedent deed of variation...

FORTHCOMING CHANGE : The Renters’ Rights Act 2025 was granted Royal Assent on 27 October 2025. For advice on the Act’s effect on residential tenancies in England, refer to Practice Note: Renters' Rights Act 2025—key provisions. Use this schedule to gather information on occupiers, occupation status, critical dates, notices to be issued, and principal points when planning a vacant possession strategy for a redevelopment. This Precedent is supplied in Excel format and can also be accessed via the link on this page. Note that the schedule has been created in Excel and therefore it cannot be downloaded into Word. Vacant Possession strategy—drafting notes If the development contains more than one freehold or superior leasehold interest, you may insert extra headings to divide the schedule into further sections where appropriate. Colour code: Sample colour coding has been applied to the first few rows as an example. Landlord: The named landlord should cover both: the direct landlord the...

A: Introduction In rare situations, we may represent a client despite our possession of significant confidential information concerning another client (whether current, past, or potential). If this occurs, we must still ensure sensitive information is protected between the relevant clients and we secure the informed consent of some or all parties impacted. We may, on an exceptional basis, also act for a client while holding confidential information relating to a non-client, where that information is bound by contractual or other duties of confidence...

This formal letter serves hereby to notify the bankrupt and any additional co-owner (or occupier) of the relevant property in question that the trustee in bankruptcy (the trustee) intends to realise their beneficial interest in that property. It should generally be sent only once the trustee has resolved to formally issue a court application for possession and sale, or adapted suitably if they do not propose to apply to the court at this stage. Individual letters must be addressed and posted separately to all co-owners/occupiers, ensuring the trustee can be fully confident each has been clearly notified of the position. The precedent is written in neutral terms so as to allow easy adaptation and appropriate modification where required, and is framed on the basis that it is to be sent by the trustee’s solicitor...

Where a tenant makes an encroachment onto neighbouring land owned by a third party adjacent to the demised land, the appropriation is treated as accruing to the benefit of the tenant’s landlord. In Tower Hamlets LBC v Barrett [2006] P&CR 132 (not reported by LexisNexis®), Neuberger LJ observed at para [26] that the doctrine is clearly articulated in these terms: in every case—whether the enclosed land is part of the waste, belongs to the landlord, or is owned by someone else—the presumption is that the tenant enclosed it for the landlord’s advantage, unless the tenant has carried out some act disclaiming the landlord’s title...

Section 2 of the Landlord and Tenant Act 1987 (LTA 1987) Section 2 of the Landlord and Tenant Act 1987 (LTA 1987) states that a person is the landlord if they are (a) the direct landlord of the qualifying tenants of flats in the premises, or (b) where any such tenant is a statutory tenant, the person who, but for that statutory tenancy, would have the right to possession of the flat. Consequently, the relevant landlord is usually the immediate landlord of the qualifying tenants, so a transfer of a superior interest is generally outside scope. Intermediate headleases are often used to avoid the regime. However, s 2(2) LTA 1987 provides that where the immediate landlord is also a tenant of the premises under a tenancy that is either: a term under seven years, or a term exceeding seven years, but capable of termination within the first seven years at the superior landlord’s option, the superior landlord is also treated as the...

Paragraph 7(2) of Schedule 4 to the Electricity Act 1989 (EA 1989) states that: When a right granted by a wayleave is exercised and damage is caused to land or moveables, any person with an interest in that land or those moveables may claim compensation from the licence holder for the damage. Likewise, where using such a right disrupts someone’s enjoyment of any land or moveables, that individual may recover compensation from the licence holder for the disturbance. The EA 1989 empowers entities permitted to generate, transport or supply electricity to obtain a wayleave to place an electric line on, under or over private land, together with access rights for inspection, maintenance and replacement...