IHTM04374 - Woodlands: the death
estate
For the relief to be available, the trees or underwood must be
growing on land which is reflected in the value of a person’s
estate (
IHTM04030) immediately before his death
- IHTA84/S125 (1)(a). The normal rules apply to determine what
constitutes a deceased’s death estate for this purpose. The
main categories included and so for which the relief may be
available (the other conditions also have to be satisfied) are
- the free estate
- the deceased’s severable share of
joint property, (
IHTM15082) or in Scotland heritable
property passing under a survivorship destination (
IHTM15091)
- settled property in which the deceased had
an interest in possession, (
IHTM16000) and
- property chargeable under FA86/S102 (3) as
a gift with reservation of benefit (GWR) (
IHTM14301) You should refer any claim
for relief where tax is chargeable under FA1984/S102 (3) to TG to
consider the question of who is beneficially entitled to GWR
property under IHTA84/S125 (1)(b).
The main categories excluded from the death estate, and so for
which there can be no relief, are
- lifetime transfers (other than GWRs); the
fact that a PET (
IHTM04057) becomes chargeable solely by
reason of the transferor’s death within seven years does not
make it part of the death estate
- charges under the discretionary trust
regime
- transfers by close companies.
