Where property was settled before the deceased's death,
IHTA84/S200(1)(d) imposes liability on any person for whose benefit
the settled property or income from it is applied after the death.
For example, a person who receives a benefit from a trust which
became discretionary (
IHTM16041) on the death of a life
tenant (
IHTM16121).
Under IHTA84/S204(5), a person liable as a person for whose
benefit the settled property or income from it is applied, is
liable only to the extent of that property or income. The income
applied for the benefit of the person concerned is reckoned as the
amount less any income tax borne by them in respect of it.
Deduction is also made for any tax paid under the Taxes Act 1988,
IHTA84/S739 or 740 (under which income tax can be charged on
capital payments received by UK beneficiaries of an overseas
trust).
