2006 IHT changes: IHT and CGT treatment before 22 March 2006: lifetime transfers to settlements
(Transfers from the estate of a deceased person were covered by the charge on his estateon death. But a transfer to an actual or disabled trust was exempt to the extent that hisspouse or civil partner had an interest in possession in the settlement.)
Transfers by individuals to settlements.
| Type of transferee trust for IHT | Chargeable
IHT? | Disposal
CGT? | Can Holdover Relief
be claimed? | || | IIP or Deemed IIP: settlor or spouse or
civil partner had actual or deemed
interest in possession | No | Yes | S165 possible but
only if disabled trust
for CGT (S169D) | | IIP or Deemed IIP: other | PET | Yes | S165 possible | | A&M | PET | Yes | S165 possible | | Disabled Deemed IIP: settlor etc. has
interest | No | Yes | S165 possible but only
if disabled trust for CGT
(S169D) | | Disabled Deemed IIP: no settlor etc.
interest | PET | Yes | S165 possible | | Other non-IIP: settlor etc. interest | Yes | Yes | No | | Other non-IIP: no settlor etc. interest | Yes | Yes | S260(2)(a) |
Note that TCGA92/S165 relief is only available for certain assets.
S165 and S260 do not apply to transfers to settlements after 9 December 2003 where asettlor or spouse or civil partner can or do benefit, unless it is within S169D.
For a summary of the types of trust see CG36529.