IHTM42990 | Employee benefit trusts: associated issues: newspaper trusts
From HM Revenue & Customs · Inheritance Tax Manual
Where shares in a newspaper publishing company, or a newspaper holding company are the only or principal assets in the settlement, is applied to the trust by as if newspaper publishing companies were included among the persons within and (b).
defines the terms ‘newspaper company’ and ‘newspaper holding company’ and specifies the circumstances in which shares are to be treated as ‘principal property comprised in the settlement’.
Where the conditions are satisfied, you should apply the instructions that apply to employee benefit trusts to newspaper trusts in exactly the same way - charges to and exemptions from Inheritance Tax apply as outlined in the instructions.
No exemption for transfer from discretionary trust to newspaper trust
HMRC’s view is that does not apply to transfers from discretionary trusts to newspaper trusts. The title at refers to employee trusts only while refers to both employee and newspaper trusts.
More importantly, uses the words ‘held on trusts of the description specified in S86(1)’ whilst IHTA/S72 uses the words ‘property to which S86 applies.’ The words at clearly cover newspaper trusts, but on the face of it those at IHTA/S75 do not. In any case it is unlikely that a newspaper trust would satisfy all the conditions in .