Commentary

52 Inheritance tax treatment of settlements—after 21 March 2006

CHOSES IN ACTION vol 7
CHOSES IN ACTION vol 7 | Commentary

52 Inheritance tax treatment of settlements—after 21 March 2006

CHOSES IN ACTION vol 7 | Commentary

52 Inheritance tax treatment of settlements—after 21 March 2006

The Finance Act 2006 made radical changes in the inheritance tax treatment of settlements. In general, all new trusts are subject to the relevant property charging regime, and the special treatment for interests in possession under the Inheritance Tax Act 1984 Section 491 is therefore limited to:

  1. 52.1

        interests in possession in existence on 22 March 2006 and successive interests in possession arising before 6 October 20082;

  2. 52.2

        an immediate post death interest, namely an interest in possession which arises on death. A typical immediate post death interest would be a

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