Commentary

51 Inheritance tax treatment of settlements—before 22 March 2006

CHOSES IN ACTION vol 7
| Commentary

51 Inheritance tax treatment of settlements—before 22 March 2006

| Commentary

51 Inheritance tax treatment of settlements—before 22 March 2006

Until 22 March 2006 inheritance tax distinguished between:

  1. 51.1

        settlements in which a beneficiary enjoyed an interest in possession—that beneficiary was treated under the Inheritance Tax Act 1984 Section 49(1) as being ‘beneficially entitled to the property in which the interest subsists’1; and

  2. 51.2

        other settlements, and, typically, discretionary trusts, which were subject to a separate charging regime in the Inheritance Tax Act 1984 Part III Chapter III2 (‘the relevant property regime’). Charges were imposed every ten years (the so-called anniversary charge) and—in the event of any of the settled property

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