IHTM42229 - The settlement: property moving from one settlement to another

When property is transferred from one settlement to another, usually as a result of the trustees exercising听a power of appointment바카라 사이트痮r an assignment by a beneficiary,바카라 사이트�that property바카라 사이트痠s treated as remaining in the first settlement바카라 사이트痓ut only바카라 사이트痜or the purposes of the바카라 사이트痗harges바카라 사이트痵et out for바카라 사이트痳elevant바카라 사이트痯roperty trusts in Chapter III, Part III,바카라 사이트疘HTA84/S81바카라 사이트�听

This means that바카라 사이트痶en-year anniversary (TYA)바카라 사이트痗harges바카라 사이트�(IHTM42081)바카라 사이트痑rise on the transferred property on the바카라 사이트疶YA바카라 사이트痮f the commencement of the바카라 사이트痜irst바카라 사이트痵ettlement.바카라 사이트疶his rule therefore prevents transfers to another settlement from avoiding바카라 사이트痶he바카라 사이트疶YA charge听by keeping the settlement intact.바카라 사이트�听

The rule does not听apply for the other purposes of the바카라 사이트�Inheritance Tax Act so that, e.g. the accountability and liability rules for the transferred property will be the responsibility of the recipient trustees.바카라 사이트�바카라 사이트�听

Similarly, S81 does not바카라 사이트痬ean that the trusts applying to the transferred property remain the same. It will be held on the terms of the recipient trust.바카라 사이트�听

The transfer of property바카라 사이트�between settlements听will바카라 사이트痳arely바카라 사이트痝ive rise to an exit charge.바카라 사이트疶hat is because either the property remains听relevant property or there is a statutory exemption that applies, e.g. a transfer to a special trust such as a charitable trust or an employee benefit trust (see IHTA/S75, S75A & S76). However, if the recipient trust is, e.g. a disabled person바카라 사이트檚 trust then the property will then have become non-relevant property and a charge may arise.바카라 사이트�听

Impact on excluded property바카라 사이트�听

For times on or after 6 April 2025, excluded property for foreign assets can only be available if the settlor of the first trust is not a long-term UK resident.바카라 사이트�바카라 사이트�听

Prior to then excluded property depended not only on the domicile of the settlor of the first trust but also바카라 사이트�바카라 사이트�听

  • the domicile of the settlor of the recipient trust or바카라 사이트�바카라 사이트�听

  • the domicile of a person who made an assignment of the trust property (or had exercised a general power of appointment).바카라 사이트�听

These additional听tests depended upon whether the inter-trust transfer was바카라 사이트�바카라 사이트�听

  • prior to 22 July 2020 or바카라 사이트�바카라 사이트�听

  • between 22 July 2020 and before 6 April 2025.바카라 사이트�바카라 사이트�听

These tests are now repealed and guidance on these historic tests is at바카라 사이트�IHTM42603.