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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.5 Favoured trusts for young people /Accumulation and maintenance trusts—tax implications / I5.534 Expiry of the 25-year condition
Commentary

I5.534 Expiry of the 25-year condition

IHT, trusts and estates

If this 25-year period runs out before 6 April 2008 and before the beneficiaries become entitled to absolute interests or interests in possession in the property (and the common grandparent condition does not apply) there will be an IHT charge, when the period runs out1 (see I5.532). It seems there will be an IHT charge under IHTA 1984, s 71(3) even if immediately after the period runs out and the settled property ceases to be property to which s 71 applies, it falls into the new regime for 18–25 trusts under IHTA 1984, s 71D(3) — see I5.551.

There will also be an IHT charge2 when the period runs

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Web page updated on 17 Mar 2025 15:22