limited owner’s charge
An equitable charge on land securing repayment to a limited owner of inheritance tax paid by him to HM Revenue and Customs on the acquisition of his interest. The tax is normally payable out of the trust property but if the limited owner pays it personally (e.g. to avoid having to sell land when the trust money is insufficient to cover the tax) the charge arises to secure his reimbursement. The charge is registrable (see registration of encumbrances). |