Commentary

I3.319 Lifetime transfers which are immediately chargeable

IHT, trusts and estates

I3.319 Lifetime transfers which are immediately chargeable

I3.319 Lifetime transfers which are immediately chargeable

There remain some lifetime transfers of value which are immediately chargeable to IHT irrespective of how long the transferor survives1. The main examples are:

  1.  

    •     a transfer before 22 March 2006 of property into a discretionary settlement (not being an accumulation and maintenance (A&M), disabled, or protective trust)2

  2.  

    •     a transfer after 21 March 2006 of property into a disabled person's interest or the settlement is a pre-22 March 2006 settlement of a life insurance policy on interest in possession trusts and the transfer is payment of a premium3

  3.  

    the termination of an interest in possession in settled property before 22 March 2006, to be followed by discretionary trusts (not being A&M, disabled or protective trusts). This can give rise to a tax charge at special rates by reference to the settlor's previous chargeable transfers if the settlement was made after 16 March 1987 by means of a potentially

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