IHTM06020 | Rules about excepted estates: settled property
From HM Revenue & Customs · Inheritance Tax Manual
For any deaths occurring before 6 April 2002 an estate could not qualify as an excepted estate () if the deceased held an interest in possession () in settled property ().
SI2002/1733 Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2002 introduced a new regulation that an estate could be an excepted estate if the deceased held an interest in a single settlement that does not exceed the cash limits below:
| Deaths (all dates inclusive) | Gross value of trust |
|---|---|
| 6 Apr 2002 to 31 Aug 2006 | £100,000 |
| 1 Sept 2006 to 31 Dec 2021 | £150,000 |
| 1 Jan 2022 onwards | £250,000 |
When considering exempt excepted estates () for deaths from 6 April 2004, the values stated above refer to the chargeable value of the trust.
For deaths on or after 1 January 2022 the gross value of the trust before the deduction of spouse or civil partner exemption and/or charity exemption only cannot exceed £1,000,000. For deaths from 6 April 2004 to 31 December 2021 the gross value of the trust together with the gross value of the other assets of the estate and specified transfers cannot exceed £1,000,000.
If the deceased held an interest in possession in more than one settlement the personal representatives () will still need to complete an IHT400 ().