CG36525 | 2006 IHT changes: introduction

In 2006 there were fundamental changes to the treatment of settlements for IHT. The legislation incorporated change to the treatment for CGT where a person with an interest in possession died. It also had significant consequences for CGT because of the increase in occasions of charge for IHT.

The purpose of this part of the CG Manual is to provide explanations largely by way of checklists to demonstrate the interaction between IHT and CGT, with particular reference to CGT gifts hold-over relief after FA2006. It is not possible to set out every possible set of circumstances. Nor should it be regarded as a substitute for the more detailed guidance elsewhere in CG Manual, and in the IHT Manual.

An outline of the IHT treatment is at CG36540.