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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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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.

  1. Trusts with an immediate post-death interest, see IHTA84/S49A. [“IPDI” trusts].
  2. Trusts with an interest in possession which the holder became entitled to before 22 March 2006. [“Pre 220306 IIP” trusts].
  3. Trusts with a transitional serial interest, see IHTA84/S49B as explained in IHTA84/S49C, IHTA84/S49D and IHTA84/S49E. [“TSI” trusts].
  4. Trusts where a person has a ‘disabled person’s interest’ which is an actual IIP. See IHTA84/S89 and IHTA84/S89B. [“Disabled actual IIP” trust.].
  5. 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.].
  6. Trusts for the disabled, see IHTA84/S89 and IHTA84/S89A. [“Disabled deemed IIP” trusts].
  7. Trusts for bereaved minors, see IHTA84/S71A. [“Bereaved Minor” trusts].
  8. Accumulation and maintenance trusts, see IHTA84/S71 as amended in FA 2006. [“A&M” trusts].
  9. Age 18-25 trusts, see IHTA84/S71D. [“18-25” trusts].
  10. 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.