IHTM45005 - Reduced rate for gifts to charity: components of the estate: settled property component

The settled property component, IHTA84/Sch1A/Para 3(3), is made up of all the settled property to which the deceased was beneficially entitled on death and in respect of which a charge arises under IHTA/S49(1). This will include all pre-March 2006 interests in possession (IHTM16063), immediate post death interests and disabled person’s interests where the deceased is treated as being entitled to an interest in possession (IHTM16061). It will also include property that devolves under a Settled Land Grant (IHTM05103).

Where the deceased was entitled to more than one settled interest, the charitable giving condition (IHTM45002) must be met for the component as a whole. There is no scope to vary the destination of settled property, IHTA84/S142(5).