SCHEDULES

SCHEDULE 20Inheritance tax: rules for trusts etc

Part 1“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

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)—

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).