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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Discretionary trusts: Scottish Law issues

Charging provisions under IHTA84 apply equally to Scotland, England and Northern Ireland.

The foundation of Scottish Law regarding inheritance and trusts is similar to English Law, but varies in a number of ways. Some noteable examples are in the terminology;

  • Truster: settlor (in lifetime)
  • Testamentary trust: will trust
  • Heritable property: land and buildings, crops on land, bonds secured on land
  • Moveable property: anything that’s not heritable property
  • (subdivision) Corporeal property: something that can be seen and touched (tangible)
  • (subdivision) Incorporeal property: something that cannot be seen or touched (intangible)
  • Minor: could mean anyone under 21

Page IHTM12201 contains some details of Scottish prior rights arrangements on death.

The HMRC Trusts Manual contains some useful background information about Scottish Law from TSEM6500. Refer any issues where application of Scottish Law is material to TG Edinburgh.