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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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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.