Practical Law UK Glossary 1-382-5654 (Approx. 11 pages)
Glossary
Interest in possession
Interest in possession (IIP) is a trust law principle that has UK taxation implications.
A beneficiary of a trust has an IIP if they have the immediate right to receive the income arising from the trust property, or have the use and enjoyment of it.
Before 22 March 2006, all IIP trusts are treated for inheritance tax (IHT) purposes as though are were owned by the beneficiary with the IIP.
An IIP trust created on or after 22 March 2006 is only treated in this way if it is one of the following: