Finance Act 2006 (c. 25)

SCHEDULES

SCHEDULE 20 U.K. Inheritance tax: rules for trusts etc

Part 1 U.K. “Trusts for bereaved minors”, “age 18-to-25 trusts” and “accumulation and maintenance” trusts

Section 71 of IHTA 1984 to cease to apply to certain settled property from 6th April 2008 U.K.

3 (1) In section 71(1)(a) of IHTA 1984 (section applies to settled property only if one or more persons will become beneficially entitled on or before reaching a specified age not exceeding 25)— U.K.

(a) for “twenty-five” substitute “ eighteen ”, and

(b) omit “or to an interest in possession in it”.

(2) Sub-paragraph (1) comes into force on 6th April 2008 but only for the purpose of determining whether, at a time on or after that day, section 71 of IHTA 1984 applies to settled property.

(3) There is no charge to tax under section 71 of IHTA 1984 in a case where—

(a) settled property ceases, on the coming into force of sub-paragraph (1), to be property to which that section applies, but

(b) that section would immediately after the coming into force of sub-paragraph (1) apply to the settled property but for the amendments made by sub-paragraph (1).