IHTM42228 - The settlement: Relevant property settlements set up by IOV (IHTA84/S142)

Where a discretionary trust is set up under an instrument of variation (IOV), the trust is treated for Inheritance Tax purposes  

• as having commenced at the date of death, and 

• the deceased is treated as the settlor. 

See the IOV guidance from IHTM35131

Note that for Income Tax and Capital Gains Tax purposes the settlor is the person making the variation (rather than the deceased) and the date of commencement is the date of the variation.