In exercise of its powers under the I(PFD)A 1975 the court may
order property to be settled, or it may bring to an end an existing
settlement made directly or indirectly by the deceased, or, without
bringing it to an end, the court may order a variation of the
trusts. A consequential tax charge which would otherwise arise
under IHTA84/S52 (1) when the order comes into force is negatived
by IHTA84/S146 (6). However IHTA84/S146 (6) does not negative a
subsequent charge, for example on termination of a life interest
created or substituted by the order.
The application of IHTA84/S146 (6) to discretionary trusts is
covered in IHTM42000.
