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HMRC internal manual

Inheritance Tax Manual

Orders under the Inheritance (Provision for Family and Dependants Act) 1975: settled property

In exercise of its powers under the I(PFD)A 1975 the court may

  • order property to be settled, or  

  • it may bring to an end an existing settlement made directly or indirectly by the deceased, or,  

  • without bringing it to an end, the court may order a variation of the trusts. 

A consequential tax charge which would otherwise arise under IHTA84/S52(1) when the order comes into force is negatived by IHTA84/S146(6).  However IHTA84/S146(6) does not negative a subsequent charge, for example on termination of a life interest created or substituted by the order.

The application of IHTA84/S146(6) to discretionary trusts is covered in IHTM42000.