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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Settled property: discharge for excepted terminations

In the case of an ‘excepted termination’ (IHTM10834) the regulations provide for the settlement trustees to be automatically discharged from any obligation to deliver an account, and from any claim to tax, once 6 months from the termination have elapsed unless

  • there has been fraud or failure to disclose material facts
  • at some time later it comes to light that the termination was not an excepted termination, or
  • during the 6 month period they have been served notice in writing requiring the delivery of an account.

The discharge does not affect the liability to tax of any persons other than the trustees of the settlement, or the trustees’ liability to pay tax on any other property.