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IHTA84/S144

A will may set up a discretionary trust and specify that the power of appointment is to be exercised within two years of death. This is because IHTA84/S144 treats the exercise as if it had been provided for in the will. »Ê¹ÚÌåÓýappre are no special Capital Gains Tax rules for this situation. This exercise is not a deed of variation, but a normal exercise of a power of appointment. See CG31432+ for the CGT treatment if the power is exercised before residue has been ascertained or assent given. Otherwise the normal Capital Gains Tax rules apply.

»Ê¹ÚÌåÓýapp IHT treatment is explained in IHTM35181+.