CG36470 | Death of person with interest in possession: part of settled property

TCGA92/S72 (5), TCGA92/S72 (4)

Where there is

• an interest in part of the settled property of a trust,

and

• no right of recourse to the remainder of the settled property or the income from it,

that part of the settled property is to be regarded as being under a separate settlement for the purposes of TCGA92/S72, but not for any other purposes, see Section 72(5).

A similar provision applies to annuities. See Section 72(4).(It should be borne in mind that exceptionally separate settlements may exist in law even though they have been created by the same trust instrument and have the same body of trustees, see CG33280. Where this is so, Section 72(5) has no relevance except for each separate settlement.

From 22 March 2006 this only applies to certain kinds of interest in possession, see CG36525.