IHTM14170 - Annual exemption: settled property requirement

Under IHTA84/S57 (3) and (4) , the exemption applies on the lifetime termination of an interest in settled property (IHTM16091) only if

• within six months of the termination
• the person whose interest is terminated
• gives a notice to the trustees of the settlement
• specifying how much of the annual exemption is to be set against the amount treated as transferred on the termination.

The form for giving the notice is form 222. It does not have to be sent to this office, but the trustees are instructed on the form to retain it in case it is subsequently required by HMRC IHT.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)