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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Rules about excepted estates: settled property

For any deaths occurring before 6 April 2002 an estate could not qualify as an excepted estate (IHTM06012) if the deceased held an interest in possession (IHTM16060) in settled property (IHTM16041).

Sl2002/1733 IHT (Delivery of Accounts) (Excepted Estates) Regulations 2002 introduced a new regulation that an estate could be an excepted estate if the deceased held an interest in a single settlement that does not exceed the cash limits below

Deaths (all dates inclusive) Gross value of trust
   
6 April 2002 to 31 August 2006 £100,000
1 September onwards £150,000

If the deceased held an interest in possession in more than one settlement the personal representatives (IHTM05012) will still need to complete an IHT400 (IHTM10021)