CG36551 | 2006 IHT changes: IHT and CGT treatment from 22 March 2006: settlements and death of person with actual or deemed interest in possession
From HM Revenue & Customs · Capital Gains Manual
These are all cases where a person with an actual IIP, or a deemed IIP for IHT, dies.
Cases where property ceases to be settled for IHT purposes.
| Type of transferor trust for IHT | Chargeable transfer for IHT? | Disposal for CGT? | Can Holdover Relief be claimed? |
|---|---|---|---|
| IPDI, Pre 200306 IIP, TSI or Disabled | No charge | TCGA92/73 applies | S165 |
| Trust with Actual IIP: with settled | IHTA84/S18 | death uplift; liability | possible |
| property passing to spouse or civil | exemption | only if TCGA92/S74 | - |
| partner of the previous income | - | applies | - |
| beneficiary | - | - | - |
| IPDI, Pre 200306 IIP, TSI or Disabled | Yes. Added | TCGA92/73 applies; | S260(2)(a) |
| Trust with Actual IIP: other cases | to | death uplift; liability | - |
| - | deceased’s | only if TCGA92/S74 | - |
| - | estate. | applies | - |
| IPDI, Pre 200306 IIP, TSI or Disabled | No charge | TCGA92/S71(1) | S165 |
| Trust with Deemed IIP: with settled | IHTA84/S18 | applies; no uplift | possible |
| property passing to spouse or civil | exemption | - | - |
| partner of the previous income | - | - | - |
| beneficiary | - | - | - |
| IPDI, Pre 200306 IIP, TSI or Disabled | Yes. Added | TCGA92/S71(1) | S260(2)(a) |
| Trust with Actual IIP: other cases | to | applies; no uplift | - |
| - | deceased’s | - | - |
| - | estate. | - | - |
| Scottish proper liferent or Northern | Depends on | TCGA92/73 applies | S260(2)(a) |
| Irish legal interest for life | status for | death uplift; liability | - |
| - | IHT | only if TCGA92/S74 | - |
| - | - | applies | - |
| Trust for Disabled with Deemed IIP: | No | TCGA92/S71(1) | S165 |
| with property passing to spouse or civil | - | applies; no uplift | possible |
| partner of the disabled beneficiary | - | - | - |
| Trust for Disabled with Deemed IIP: | Yes. Added | TCGA92/S71(1) | S165 |
| any other situation | to | applies; no uplift | possible |
| - | deceased’s | - | - |
| - | estate | - | - |
| Bereaved Minor Trust: death of | No | TCGA92/73 applies | S260(2)(da) |
| relevant beneficiary | - | death uplift; liability | - |
| - | - | only if TCGA92/S74 | - |
| - | - | applies | - |
| 18-25 Trust: death under 18 | No | TCGA92/73 applies | S260(2)(db) |
| - | - | death uplift; liability | - |
| - | - | only if TCGA92/S74 | - |
| - | - | applies | - |
| 18-25 Trust other | Yes under | Yes | S260(2)(a) |
| - | S71E | - | - |
| Relevant Property Trust: settlor etc | Depending | Yes | S260(2)(a) |
| interest settlor dies | on facts may | - | - |
| - | be | - | - |
| - | chargeable | - | - |
| - | under gifts | - | - |
| - | with | - | - |
| - | reservation | - | - |
| - | rules | - | - |
| Relevant Property Trust: any other | Yes | Yes | S260(2)(a) |
| case with actual or deemed interest in | - | - | - |
| possession | - | - | - |
*Note that TCGA92/S165 is only available for certain assets, see CG66884.
For categories of case see CG36541.
For gifts with reservation please see the IHT Manual.