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HMRC internal manual

Inheritance Tax Manual

Excepted settlements - pilot trusts

The 2008 regulations rolled forward the exclusion for pilot trusts so that where

  • the chargeable event is on or after 6 April 2007,
  • throughout the existence of the settlement, cash is the only property comprised in the settlement,
  • following the commencement of the settlement, the settlor provided no further property which became comprised in the settlement,
  • the trustees of the settlement are resident in the United Kingdom and remain resident for the duration of the trust,
  • the gross value of the settled property throughout the existence of the settlement does not exceed £1,000, and
  • there are no related settlements

the trustees are excused the need to deliver an account. The 2008 regulations do not revoke the 2002 regulations for charges up to and including 5 April 2007; these remain in force and apply from 6 April 2002.

The 2002 regulations are in same form as above with the exception that requirements in the second and fifth bullets that the settled property was cash and did not exceed £1,000 in value applied at the time of the chargeable event and not throughout the existence of the settlement. This change ensures that this part of the current regulations focuses on pilot trusts only.