2006 IHT changes: IHT treatment from 22 March 2006: summary of Classes
For IHT purposes trusts can be divided into ten classes. IHTA84/S59(1)(a) provides thatthe term qualifying interest in possession includes any interest in possession[IIP] to which an individual has become entitled, provided that if he becameentitled to the interest on or after 22 March 2006 it is of the first, third or fourthtype listed below.
- Trusts with an immediate post-death interest, see IHTA84/S49A. [IPDI trusts].
- Trusts with an interest in possession which the holder became entitled to before 22 March 2006. [Pre 220306 IIP trusts].
- Trusts with a transitional serial interest, see IHTA84/S49B as explained in IHTA84/S49C, IHTA84/S49D and IHTA84/S49E. [TSI trusts].
- Trusts where a person has a disabled persons interest which is an actual IIP. See IHTA84/S89 and IHTA84/S89B. [Disabled actual IIP trust.].
- Trusts with a deemed IIP which is regarded as an IPDI trust or a Pre 220306 IIPP trust or a TSI trust. For purely IHT issues this category has no separate existence, but CGT treats actual and deemed interests in possession differently. [Deemed IIP trusts.].
- Trusts for the disabled, see IHTA84/S89 and IHTA84/S89A. [Disabled deemed IIP trusts].
- Trusts for bereaved minors, see IHTA84/S71A. [Bereaved Minor trusts].
- Accumulation and maintenance trusts, see IHTA84/S71 as amended in FA 2006. [A&M trusts].
- Age 18-25 trusts, see IHTA84/S71D. [18-25 trusts].
- The generality of trusts not falling in any other class. [Relevant property trusts].
Further information about the types of case is in the next four paragraphs.