IHTM04098 - Settled property:
charges on special trusts
IHT is also charged on special trusts. The common feature of the
special trusts is that they are not liable to the ten yearly and
proportionate charges that apply to other discretionary trusts.
Otherwise the tax treatment of property held on special trusts
varies. It may be
- liable to tax only in some circumstances,
for example, a temporary charitable trust, IHTA84/S70 or
accumulation and maintenance trusts (
IHTM04099), IHTA84/S71, or
- treated as if the principal beneficiary
had an interest in possession, for example, protective, (
IHTM04101) IHTA84/S88 and disabled
trusts (IHTM04102), IHTA84/S89.
