Commentary

I1.527 Settled property with no beneficiary-taxed interest in possession

IHT, trusts and estates

I1.527 Settled property with no beneficiary-taxed interest in possession

I1.527 Settled property with no beneficiary-taxed interest in possession

The principal example of this type of settled property is property subject to discretionary trusts, but other arrangements come within it such as property to the income of which someone is entitled, but subject to an overriding power of the trustees to accumulate the income. This type of settled property also includes settled property subject to an interest in possession where the interest in possession has commenced on or after 22 March 2006 and is not a transitional serial interest, a disabled person's interest, or an immediate post-death interest. The key definition is 'relevant property', which refers to settled property which is not subject to a beneficiary-taxed interest in possession to which an individual is beneficially entitled, and is not in any favoured category such as charitable trust property, trusts for minors or young persons, maintenance funds for historic buildings or excluded property1 (see I5.303). Another definition of note is of 'related settlement' — a settlement is related to another if it was made by the same settlor and first had property comprised in it on the same day as the other settlement first had property comprised in it2

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