SolvedCG36549 | 2006 IHT changes: IHT and CGT treatment from 22 March 2006: transfers from settlements
From HM Revenue & Customs · Capital Gains Manual
Transfers from trustees of settlements to individuals other than on termination ofinterest in possession on death:
| Type of transferor trust for IHT | Chargeable transfer for IHT? | Disposal for CGT? | Can Holdover Relief be claimed? |
|---|---|---|---|
| Cases subject to qualifying IIP treatment: transferee or spouse or civil partner becomes absolutely entitled | No | Yes | S165 possible |
| Cases subject to qualifying IIP treatment: other | Potentially Exempt Transfer | Yes | S165 possible |
| Disabled Trust: transfer to person with deemed IIP or spouse or civil partner | No | Yes | S165 possible |
| Disabled Trust: transfer to other person | Potentially Exempt Transfer | Yes | S165 possible |
| Bereaved Minor Trust: transfer to bereaved minor | No | Yes | S260(2)(da) |
| Bereaved Minor Trust: transfer on death of bereaved minor | No | Yes | S260(2)(da) |
| Bereaved Minor Trust: other transfer (through statutory power of advancement) | Yes | Yes | S260(2)(a) |
| A&M Trust (pre 22 March 2006) transfer to relevant beneficiary | No | Yes | S260(2)(d) |
| A&M Trust (pre 22 March 2006): transfer on death of relevant beneficiary | No | Yes | S260(2)(d) |
| A&M Trust (pre 22 March 2006): other transfer (through statutory power of advancement) | Yes | Yes | S260(2)(a) |
| 18-25 Trust: transfer to relevant beneficiary when under 18 | No | Yes | S260(2)(db) |
| 18-25 Trust: transfer on death of relevant beneficiary when under 18 | No | Yes | S260(2)(db) |
| 18-25 Trust: transfer to relevant beneficiary when over 18 | Yes | Yes | S260(2)(a) |
| 18-25 Trust: transfer on death of relevant beneficiary when over 18 | Yes | Yes | S260(2)(a) |
| 18-25 Trust: other transfer (through statutory power of advancement) | Yes | Yes | S260(2)(a) |
| Relevant property Trust: settlor etc interest | Yes also gift with reservation depending on assets | Yes | S260(2)(a) |
| Relevant Property Trust: no settlor interest | Yes | Yes | S260(2)(a) |
| Relevant Property Trust: within 90 days of ten year charge | No | Yes | S165 possible |
Note that TCGA92/S165 is only available for certain assets.
S165 and S260 do not apply to transfers to most settlements where the settlor or spouse orcivil partner or minor child or minor step-child (unless married or in a civilpartnership) can or do benefit.
For types of trust see CG36541.