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»Ê¹ÚÌåÓýappre are two separate IHT charging regimes for settled property. »Ê¹ÚÌåÓýappse depend on whether a person has an interest in possession (IHTM16060) in the settled property, (an IIP trust) or whether the settled property is held on trusts in which no interest in possession subsists. This latter form of settlement is commonly called a discretionary trust, although because the legislation applies to settled property ‘in which no qualifying interest in possession existsâ€�, the scope of the charge is very wide.

Where an interest in possession subsists, the settled property is treated as forming part of a person’s estate (IHTM04029) and is taxed on death (IHTM04041) or during their lifetime (IHTM04051) as if they owned the property (IHTM04030) in their own name.

»Ê¹ÚÌåÓýappre is a separate regime for charging IHT on a discretionary trust. (IHTM40495)