The annual exemption applies on the lifetime termination of a
qualifying interest (
IHTM16162) in settled property only if
the person whose interest is terminated gives notice in writing to
the trustees of the settlement within six months of the termination
specifying how much of the annual exemption is available [to him as
an individual] that can be used against the termination (IHTA84/S57
(3) and (4).
The notice should not be sent to HMRC Inheritance Tax. It
should be retained by the trustees in case it is subsequently
required by HMRC Inheritance Tax.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
